Abstract For recent years, enterprises in Taiwan face the challenges of global competition. Most of Taiwan companies cannot compete with international companies on capital or scale. Thus cooperation with competitors or formation of strategic alliance become one of the best policy of reducing management and sales cost of entering new market and business risks. For the small-and-medium size enterprises which own unique skills but are lack of resources and new technologies, it could be the niche of entering global market to obtain transfer of technologies and management skill from superior internationalized enterprises. Door lock manufacturing industry is an absolute conservative industry. From the ancient year, due to security concern, it was a family inherited business. Through technology breakthrough and industrial revolution, it gradually turns into a mass production industry. Like most of the other industry, in recent years, Taiwan was developed to be an important manufacturing base of the global door lock industry. This thesis adopted the exploring methodology. It conducted its study based on the industrial analysis. It analyzes the door lock industry through horizontal analysis ¡V competitor analysis and vertical analysis ¡V supply chain analysis. It further create the following assumptions based on the resources interdependence theory, transaction cost theory and Porter¡¦s five forces analysis: 1. The motivation of strategic alliance is based on the resources interdependence theory. 2. The selection of partner in the strategic alliance is based on the transaction cost theory. 3. The objectives of strategic alliance are based on Porter¡¦s five forces analysis. Based on the above assumptions, this study conducted analysis on the strategic alliance project in between Taiwan Fu Hsing Industrial Co. Ltd. and Ingersoll Rand Group of companies. Through in-depth interviews with management executives from both companies, this study build up a model confirming the above assumptions. Further more, this thesis also present a series of recommendations to both companies in hope of leading this strategic alliance project into a win-win situation. Key words: Strategic alliance, Door lock industry