Abstract The phrase “Made In Taiwan” has been stamped on numerous products over significant period of time, and because of Taiwan’s success in manufacturing the Taiwan enterprises earned the reputation of quality decency along with reasonable price in the world. Taiwan’s economy is largely constituted of Small to Medium sized enterprises which exhibit the forte of flexibility. The SMEs’ advantage in size enables them to adjust efficiently to changes in the industry. Through performing the case study on Taiwan Auto International CO., LTD, a SME dedicated in Auto Parts export, analysis of feasible routes of transformation is analyzed under the consideration of the macro environment, industry environment, and its internal environment. The suggested steps to be taken are discussed in term of the theory of transformation along with discussion of the current internal problem analyzed in agency theory.