Chiuan Yan Technology Co., ltd. is one of many small and medium-sized enterprises in Taiwan’s machinery manufacturing industry. The company’s operating revenue has been growing. However, under the influence of factors like price competition in the same trade, product life cycle reduction and rapid integration of science and technology, the company’s operating revenue began to decline. At that moment, the company conducted rapid transformation by utilizing the blue ocean strategy and jumped out of the red sea, not to use the price competition as the only means. The operating revenue achieved another record high in 2013. There are quite a few cases discussing the blue ocean strategy in Taiwan already, but the objects of study are mostly large-sized enterprises. Taking the small and medium-sized enterprises as the cases for study, this study hopes to provide some references for the small and medium-sized enterprises in Taiwan. This study starts from the author’s in-depth interviews with General Manager Yu-ying Chiu, the company’s founder, ranging from the founder’s personality traits and life experience to entrepreneurial motivation. He has led the company to develop from the commission agent period to the OEM period by manufacturing, designing and establishing products by technical research, development and innovation, participating numerous competitions and patent certification application and launching the horizontal alliance to conduct product marketing. These series of transformation processes have enabled Chiuan Yan Technology to further create its own brand and proudly call itself a “Rolls-Royce” in the circle of tools and machinery. Developing from an agent to conducting OEM manufacturing and then to a brand, Chiuan Yan Technology faces the same issues like price competition and how to escape the red sea faced by the ordinary enterprises in Taiwan during the process of enterprise transformation. To this end, it is hoped that the keys to the successful operational transformation and the blue-sea strategy development model of this company can serve as an example for the entrepreneurs and small and medium-sized enterprises.