In the era of lacking raw materials, the energy and resources are getting precious; these factors raise our concern on environmental protection issues and take good care of the only earth. Resource recycling has been built in our daily life, as a result. Upon government¡¦s initiatives and policies, what private sectors can play to maximize the impact? We believe the structure of ¡§recycling channel¡¨ is the most effective operational model with speed. And it will retrieve the valuable resources from consumers, eventually distribute to related industries for recycling. This study targets on Taiwan first island-wide resource recycling channel firm¡¦s innovative business model, and his competition strategy to extend his coverage in mainland China. We analysis and compare the business model and core competence between two firms with different background and industry¡¦s characters Our target firm has been in the business for 8 years, however it still lacks of experience or cases that is similar to our assumption. Our methodology is to interview with experts, review theories, study target firm¡¦s management system, and correlate with my own experience in this industry. We adopt SWOT, Porter¡¦s Five-Force Analysis, Strategy Matrix, and strategy structure to be the framework for this research. We try to propose a solution to target firm for the possible business strategy adjustment, and study the feasibility of copying Taiwan experience onto China. After SWOT analysis, the case company has the competitive advantage of ¡§management system, IT solution, and quality talents¡¨. In order to enlarge the business scale, business strategy should be shifted from ¡§market penetration¡¨ to ¡§diversification¡¨ gradually. To allocate organizational resources align with weighted growth strategy, and utilize current products and services to serve new markets. In the future, the company can move onto the strategies of ¡§sales development and training, seeking alliance inside or outside recycling industry, creative and customized service model, and market segmentations¡¨. To sum up, the case company should choose ¡§differentiation strategy¡¨, and to be recognized and supported by customers. This is the way to avoid price war and secure the profits. Without protection by government resources and policies, Taiwan experience can¡¦t be transplanted to China, due to the nature of different political situation and culture gap.