With the changing economic structure, from the textile, food, petrochemicals, steel,to high-tech industry, capital and technical requirements are gradually increasing. With the liberalization and internationalization, market competition was intensified. The large conglomerates have strong financial, human, technical resources and capabilities, who are more competitive to face the intense environmental change. Taiwan 100 Group's asset size is 600 times than 40 years ago. As a result, large conglomerates grasp Taiwan's economic lifeline. The majority of conglomerates engaged in diversification, but which resources and capabilities can engage in what kind of diversification to deliver competitive advantage for conglomerates is an important subject. Therefore, this study chooses two long history and successful business group in Taiwan, which are Far Eastern Group and Yuen Foong Yu Group. To investigate that what kind of resources and capabilities they use to implement diversification strategies. Then escalating group¡¦s resources and further expand the scale of the groups. According to this study, the analysis showed that the Far Eastern Group and Yuen Foong Yu Group, technology, human resources, assets, industry position, industry business experience, management ability, organizational ability, are the key resources and capabilities to perform any kind of diversification strategies.