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ABSTRACT The greatest impact that the screw and nut industry faced currently is the continuously increasing cost of raw material. It is about 60% for the raw material in the total costs in industry chain. The cost of iron steel has increased more than 70%. The tax changes very often in China. The tax rate is very different from one to another item and from tax drawing back to tax increasing which makes about 20% price different for those middle-size manufacturers who reply on the lower cost of wire for survival. .The domestic companies in Taiwan have become competitive due to the increasing cost of raw material, market recession and more and more competitions. The current price of rod wire of China Steel Corp. is lower than the international price, but the supply amount is less than one third which makes very few suppliers own the best quality of raw material but is the lowest price. Therefore, the supply and demand disorder will happen continuously. In the cost accelerated. Significantly grow up in the cost under, therefore this research tries in the old Jing to match strategy under, look for a new profit chance, by thinking that the industry of the traditional industry-screw develops new breakthrough. This research after the sorting of the collection of literature review and data, is again currently of inventory management system and theories in the match bureau explanation manufacturing industry and the industry chain of the distributor's structure problem, aim at the letter of the research individual case company-friend of the industry of the traditional industry-screw nations, the friend camp button up a piece and hundred million Xiang hardware etc. three Jings of companies match strategy's carrying on to inquire into analysis. The business model that then aims at to produce an industry puts forth a suggestion to create currently domestic traditional industry-screw industries gathering under of competitive advantage. The research shows that the cooperation of strategy should let go of one's own opinion's establishing a product independently the marketing order, and provide oneself with the advantage, the competition ability that enhances strategy object. However after parallelism integration in traditional industry of screw, it will cause equal threat towards up and down streams definitely, therefore establishing reasonable rules for the game is rather important. However the cooperation is just a point of departure separately, therefore how extend into a whole industry cooperation, in really currently the traditional industry-screw industry rather important topic.

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