Since tobacco and liquor industry in Taiwan became an open market in 1987, the sales of Taiwan Tobacco & Liquor Corporation (TTL) self-manufactured tobacco have declined gradually. Many well-known companies such as Japan Tobacco International (JTI), Imperial Tobacco Limited (ITL), Philip Morris International (PMI), and British American Tobacco (BAT) continually entered the domestic market. It was not until 2000 that TTL finally found out that it had lost almost half of its tobacco market shares. Chairman Mr. Huang Ying Shan, who was officially appointed in 2002, knew that any change in the conservative and rigid organization would lead to a dramatic disaster. Therefore, he adopt the suggestion of Tobacco Division and outsourced part of its cigarette sales business to Seven-star Company (renamed as King Company), which was the exclusive agent of JTI in Taiwan. TTL expected the cooperation with King Company could be the model of sales business outsourcing. However, when King Company recruited new agents, it faced not only the resistance from JTI by prohibiting its agent to join the business in any way, but also the dramatic conflicts among sales channels. Many distributors of TTL worried about that TTL might outsource whole sales business. To force TTL to abandon the outsourcing strategy, these distributors united together and threatened to cease purchasing TTL’s tobacco, liquor, and beer. Surprisingly, TTL’s sales offices triggered a price battle by stock clearance and even asked the headquarters of Tobacco Division to launch similar cigarette items to compete with the agents of King Company.