Taiwan wooden furniture industry has experienced the lack of labor, shortage of raw material, and over estimated land cost for the past few years. The industry is losing its competitive advantage on production input costs in the worldwide furniture market. Therefore, the objective of this research is to investigate the industry competitive environments, i.e. government policies, macroeconomics, and industry structure. By understanding the competitive environments of industry, the competitive strategies for the Taiwan wooden furniture industry can be provided. The results show that the Taiwan wooden furniture industry has threats from other Asia countries' competition, wood furniture buyers, and wood material suppliers. Thus, the suggestion of competitive strategies for manufacturers are: establishment of the information gathering system, diversification wood material sources, and products differentiation.