PC industry is a highly competitive industry. In this fast changing environment, no company can simply rely on basic core competencies to stay-up with the market & competitions. The growth of global demand for PCs has reached a plateau in recent years, and as products are becoming commoditized the differentiation between products are hardly distinguishable. And price war is inevitable. This study investigated how does a global computer company build and manage its dynamic capabilities to stay competitive and make appropriate adjustment to leverage its dynamic capabilities in the new business. The study finds that in order to sustain competitiveness in the market, corporation needs to look inward and institute a process to manage product and service development and business risks. Having good products and customer relationship are just the starting point for a successful business. A continuous learning system can help company to constantly strive for better improvement and in a long run this becomes a strong driving factor to improve operation excellence. It takes persistent and relentless drive for improvement to make a good company to great. When a company is going to start a new business and break an existing model, one of the effective approaches is to form a special task team that is given the full ownership in making sure the project is successful. In addition, senior management team needs to work closely with the project team via regular meetings and to offer help in clearing roadblocks within the organization and allowing team to think out-of-box and propose necessary changes. Without management support and foster, the chance of success for the special task team is minimal. / PC industry is a highly competitive industry. In this fast changing environment, no company can simply rely on basic core competencies to stay-up with the market & competitions. The growth of global demand for PCs has reached a plateau in recent years, and as products are becoming commoditized the differentiation between products are hardly distinguishable. And price war is inevitable. This study investigated how does a global computer company build and manage its dynamic capabilities to stay competitive and make appropriate adjustment to leverage its dynamic capabilities in the new business. The study finds that in order to sustain competitiveness in the market, corporation needs to look inward and institute a process to manage product and service development and business risks. Having good products and customer relationship are just the starting point for a successful business. A continuous learning system can help company to constantly strive for better improvement and in a long run this becomes a strong driving factor to improve operation excellence. It takes persistent and relentless drive for improvement to make a good company to great. When a company is going to start a new business and break an existing model, one of the effective approaches is to form a special task team that is given the full ownership in making sure the project is successful. In addition, senior management team needs to work closely with the project team via regular meetings and to offer help in clearing roadblocks within the organization and allowing team to think out-of-box and propose necessary changes. Without management support and foster, the chance of success for the special task team is minimal.