The object of the research in this thesis was semiconductor industry downstream process ~ IC Packing industry. Taiwan¡¦s IC Packing capacity has been on the top of worldwide, production technical ability also developed continuously caused by new entrants. New entrants not only bring cluster effects of capacity but also bring more pressure of competition between the IC Packing domain. But in this domain, companies seem to be similar to each other through imitation. When companies become alike it also mean that profit become more lean than before, that will impact seriously on Taiwan¡¦s IC Packing industry whose main capacity are used for no brand consignment. In this thesis, it trying to study objectively of competitive advantages and strategies with some aspects from domain industry, customers, competitor and the objected company in this study. Through the thesis with systematic and mathematical process, studied by documents, questionnaire and inquire of the person in charge to get a simplified mathematics model ~ Innovation Matrix, it can use for getting an objective and comparable strategy analysis. Besides that, in order to study forwards about the Innovation Matrix, this research identified the dynamic of causal relationship by ¡§System Thinking¡¨ about cause-effect-feedback of variances in the Innovation Matrix. Finally, to make this mathematics model ~ Innovation Matrix to become a dynamic model ~ ¡§The dynamics of competitive strategy analysis model¡¨. ¡§S Company¡¨ was the object in this research, trying to find out the interaction of ¡§S company¡¨ and its inner operation process even its hidden structure, in order to create a dynamic of causal relationship model. It¡¦s looking at ¡§S Company¡¨ from a systematic thinking to instead of linear thinking at event. Finally, to prove this ¡§The dynamics of competitive strategy analysis model¡¨ with actual performance figures between ¡§S Company¡¨ and its competitor, then submitted the leverage solution of ¡§S Company¡¨.