This research applies game theory to probe into the competitive relationship among two OEM suppliers in Taiwan Sanitary wares’ and their distributor in USA. In nowadays, sanitary ware OEM in Taiwan has become perfectly competitive market. Competitive situation among suppliers and their buyers seem to be games. This research focus two different major incidents happened amount all players, through these incidents, the research discusses channel partnerships, game theory and competitive strategic behaviors. This study is a case study, collecting case companies’ information after several profound interviews, inducing different mentioned theories, building up research framework and finally resulted in below prepositions: 1. Channel partnerships among suppliers and buyers is long-term basis, a great chance that buyers betray to their suppliers would demolish as long as their relationships achieved. 2. If a buyer uses coercive power towards a supplier in a channel partnership and drive a supplier to a competitive situation, then buyer would ended up with a loss. 3. A supplier would distant from a long-term relationships due to past failure in games. Last, this research works out conclusions and recommendations to corporates as below: 1. Under positive channel partnerships, all parties should keep communication channel open, not only with buyers and very importantly with their suppliers. 2. Organizational relationship could be very complicated with great amount of information flow. Time-frame in different incidents among suppliers and distributors should also be considered.