There are dramatic changes in the operation mode for the enterprises since 1990. In cope with these changes, all enterprises are devoted themselves to seek a solution with the object of increasing competitiveness for the success of the enterprises. In other words, the organizations that are best at managing change have the competitive advantage. This is mainly due to the introduction of new technology and managerial strategy that makes the enterprise moving faster and faster in research and renovation area. As a consequence, a so-called Knowledge Management(KM) has been developed by the enterprise, which significantly changes current business strategies before entering the new knowledge-based economy of 21st century. For most of the top management of the enterprise has realized the fact that making use of knowledge management properly will possess competition in a long run. This study will elaborate on the implementation of knowledge management system for increasing competition. By using this concept and establishment process of knowledge management system, it will excite each potential creativeness that already imbedded in them. Moreover, by integration and analyzing the knowledge of each employee, so the enterprise can stay ahead of other competitors, and finally wins the customer’s satisfaction and reliance. Therefore, the use of knowledge management is not only of a necessary condition for the success of the enterprise but also a sole solution to create the high-value knowledge resources and increase the competition for the enterprise.