Although the aluminium rolling industry is considered a traditional industry, but the majority of its products are supplied to the 3C market. Hence the industry can also be classified as a high-tech industry, and must therefore adapt to rapid changing market environments. In recent years, the rise of the four BRIC countries with their low cost labor and land, have gained advantages in the low end products. Yet,escalations of international raw material prices have forced the cost of raw materials in the aluminium rolling industry to close in at nearly 80%. Substitute products are at the same time being developed feverishly, posing great threats to the aluminium industry. The China Steel Aluminium Corporation (CSAC) is taken as a case example to study how concepts of innovation management can be applied to product development in an intense competitive environment. If both product differentiation and low cost can both be achieved to explore niche markets, innovative value is created and the company will find itself in a blue sea. This study is pivoted on management of innovations. The principal factors of innovation are innovation flow, technology innovation, product innovation, process innovation and organization innovation. Each principal factor is represented by four to five sub-factors, totaling 21 sub-factors. Through analytic hierarchy process (AHP), a questionnaire was developed. Experts and scholars in the field of aluminium rolling industry were requested to rate the factors. The results were analyzed using Expert Choice 2000 statistical software, and the key success factors for management of innovation in the CSAC derived. The principal factor for innovation is technology innovation, with product innovation, process innovation, innovation flow and organizational innovation being secondary factors. Among the sub-factors, eight sub-factors emerged as key success factors with evaluation weights over 5%. These are, in ranking sequence, technology optimization, product innovation leadership, technology enrichment, technology stocktaking, cross-functional team, technology monitoring and protection, product application and development, and, execution and application. Overall speaking, technology innovation is the core value of CSAC, particularly in the areas of strengthening technology optimization and technology enrichment. CSAC should dedicate more resources in research and innovation. Product strategy should evolve from application and development into product defense development. It is further suggested that the proportion of product leading innovation strategy should be increased. In the short run, the research resources of the mother company should be fully utilized. In the long term, internal research capability should be developed, that is to increase research funding. Additionally, organization learning is the source of enterprise innovation, while exploration for change opportunities is the basis for strategy formulation. Although these two factors have not been incorporated as key success factors, they should not be overlooked.