Most of perspective on governmental and private sector assumed the future of Taiwan Phalaenopsis is positive for the variety advantages. However, the Dutch orchid companies have gathered the varieties from Taiwan orchid breeders as the resource to hybrid the new varieties with a highly commercial potential on market demand. The business strategy must be centered on finding innovative solutions to resolve customer demands. Core competence is the collective learning on how to coordinate different production skills and integrate multiple technology streams. Breeding capacity has been one of the fuels for innovation and the root of competitive advantage in Taiwan orchid industry. Fundamental adjustments in production, as well as innovation of production, marketing and distribution are urgent for Taiwan orchid firms. The attempt on experiments examined the linkage between plant physiology and the growth requirement. Under the new discovery of various varieties presented different growing performance, orchid growers can adjust the production strategy based on the plant physiology. The Dutch orchids companies are not only focus on breeding innovation but also pay attention on the production and marketing innovation sectors. Product differentiation is successfully to segment other countries that are failed to do the research to meet the demand of market trend. The core competence is to develop appropriate marketing strategies through review of the internal environment and changing market. The marketing strategy for sustainable competitive advantage is integrated plant biology and production planning.