The high-tech industry is the competitive strength as well as major profit source for countries in the world. However, these companies face a lot of uncertainties including market demands, technology progress and new competitors that bring new strategies and technology into the market. Consequently, all these elements cause intense competition within the industry. Companies that do not keep up with the trend of changes will be left behind and be forced to exit the market. In high-tech industries, players should not only take into consideration the cost of developing new technology, profit procurement, market competition, but also need to create innovative tactics to break the existing formed game rules in order to create additional market profit and strengthen long term competitiveness. That is the reason why manufacturers of smart phone and licensors of mobile OS platform have been continuously seeking innovative tactics and methods to lower costs. Game theory and its analysis can be used as tools to reflect the relations between operation tactics and costs and is an important basis for managerial decisions. This thesis applies the game theory to propose a tactics selection approach, analyzing data such as mobile OS platform price, licensee's corresponding cost, licensor's market share and overall market demand, and using business revenue to assess effectiveness. In addition, this thesis uses game theory to predict when a new and different competition appears in the market which causes irreversible change in market trend, what the anticipated pay-off would be when different tactics are adopted by players in order to preserve market share and maintain profitability. This research concludes that, market leaders as well as market followers will all adopt aggressive tactics to maintain or increase market shares by giving up license fees and adopt open OS platforms which in turn will bring in other revenue such as commercial income. However, unexpected risks need to be considered in order to contain cost and maintain profitability.