In the hypercompetitive environment of personal computer (PC) industry, several international companies have withdrawn from the PC market. How do Taiwanese firms survive in such a competitive and fast changing PC market? Utilizing the secondary data, we found that Taiwanese firms survive because of their unique competitive advantages, including flexible and quick reaction ability, learning capability, entrepreneurship and smart utilization of China's manufacturing advantage. Furthermore, this study depicts the strategic evolution of three typical companies in Taiwan, Quanta, Hon Hai and Acer. These cases show that only the company with a dynamic strategy that fits environmental change will survive in a hypercompetitive PC market.