Recently years, TFT-LCD industry has become the major development policy in Taiwan, and the scale of investment of the TFT-LCD¡¦s industry has become more and more in Taiwan, Japan and Korea. The Profit of the TFT-LCD monitor and television industry has been compressed very seriously to injure the chance and cost advantage of the second-string companies to run above business. Hence, this research is focused on a case of a TFT-LCD company termed ¡§A company¡¨ owns two old generation factories, and uses the strategy theories of scenario analysis, competition advantage, five forces analysis, resource-based view, value chain and so on and strategy tools of strategy map and balanced scorecard to analyze and find out the transformation strategy of the case of the ¡§A company¡¨ to build up the best competition advantage. To realize the competition status of outside and internal environment of TFT-LCD industry, and the resources base of the case of ¡§A company¡¨ in Taiwan, and the development situation using scenario analysis in order to define the direction of the operation strategy of the case of ¡§A company¡¨ that owns two third generation factories. The result is using strategy development tools of strategy map, balanced scorecard, key performance indicator management to develop the execution plan and performance measure indicators of the transformation strategy.