Abstract Essentially, In vitro diagnostics (IVD) testing play a key role in early disease detection; effectiveness of patient treatment monitoring throughout the progress of disease and improve decision-making for healthcare system. Several studies have demonstrated that IVD testing result in huge financial and therapeutic benefit. Taiwan IVD market has been growing rapidly in last decade due to launch of National Health Insurance policy¡Bgrowing of geriatric population¡Bimprovement of living quality¡Bconsciousness of personal health. However, this is also driving Taiwan IVD market in a highly competitive market place, it anticipated that the escalation will not only jeopardize the healthcare quality but also affect entire healthcare resources utility and increasing healthcare cost as a whole. The research analyzed the causative of Taiwan In Vitro Diagnostics (IVD) industrial is based on the framework of macroeconomic environment¡Bindustrial organization structure¡Bcompetitive marketing behavior and industrial market performance. The research found that macroeconomic environment for Taiwan IVD industrial is favorable; the industrial is presenting a mild dispersed structure and the causative for escalation was mainly caused from strategic homology among industrial enterprises. In addition to this finding, the research also developed a possibly differentiate strategy to avoid escalation throughout the learning innovation process and enterprise process reengineering as to help industrial enterprises from developing future long term strategy.