To cope with the global trend of energy conservation, LED lighting industry has become a new generation of the mainstream market. With the features of low energy consumption and pretty looks, LED lighting will replace the traditional lighting market. According to the institute study, it is estimated that the global lighting market will grow to 94 billion U.S. dollars by 2010. In order to identify the key elements of Taiwan's Lighting industry development, Michael Porter's five forces Model and SWOT analysis has been adopted in this paper. A domestic LED lighting manufacturer-D Co, Ltd. was interviewed as a case study in this paper. The results indicated that the advantage of Taiwan¡¦s lighting industry development advantage lies in the well industrial chain integrity, professional and technical research and development staff. On the other hand, the disadvantage is that LED lighting products are priced too high. If the production can not achieve economies of scale, it is difficult to promote products. The paper proposes from both marketing and production operations to improve in marketing. To formulate business strategy and understand the market needs of customers and how to achieve customized marketing for D Company is the urgent need to address. For the aspect of production, the performance measurement systems must be established to strengthen research and development and technical staff production performance. In addition, it must have a sound accounting system and management information system to enable the overall operation of D Company and to improve the allocation of production resources for maximum effectiveness.