In view of the global economic downturn, increased competitors, lower margin and other factors, the LCD TV industry are facing serious challenges. The purpose of this study is to investigate the appropriate competitive strategy in Taiwan LCD TV assembly industry from the perspective of whether competitive strategy could affect operation performance. Morevoer, this study helps to find out the appropriate strategy for firms by measuring operation performance of competitve behaviors of Taiwanese companies. The conclusion of this study hopes to provide the appropriate strategies for the future operation. This research is carried out by Pearson correlation coefficient. The findings are positive correlation between capital productivity and operation performance; labor productivity and operation performance. The ratio of R&D costs and operation performance is negative correlated. It implies a higher ratio of labor productivity and higher capital productivity result in higher rate of return; by contrast, a higher ratio of R&D cost has a lower rate of return. Moreover, through the analysis of the differences strategic groups and its operation performance by ANOVA, The results of this study finds that in the medium-size of the company in terms of employee and market size strategic group has a highest ratio of pretax income; a company type in LCD-factory strategic group has a highest market share; this study also shows that a firm without its own brand has a higher return on asset than that of a firm with its own brand. Furthermore, using Principal Component Analysis to score each firm on each year. Then using the score to classify to three groups to find out the characteristic in the term of good financial performance group. The study finds that the higher financial score group has the higher sales income, ratio of pretax income and return on asset. Finally, using Pearson correlation coefficient to refine the competitive strategy variables in order to find a higher explanation of operation performance regression model. The result shows that the higher labor productivity and capital productivity, the higher operation performance; the higher ratio of R&D cost, the worse operation performance. It implies a firm has difficult to get higher operation performance for both the strategy of cost reduction and product differentiation. It tends to production-oriented in the current situation in LCD TV assembly industry. Based on those conclusions, this research hopes for LCD TV assembly industry design apprropriarte business strategy in their operation.