This study investigates how a company in the air compressor industry, which is in the stage of maturity and facing fierce competition from low-priced Chinese products, utilizes product segmentation and its own competitive advantage to weather difficulties. Porter’s five forces analysis is used to examine the environment of the compressor industry and SWOT analysis is applied to identify the strengths, weaknesses, opportunities and threats to the case company. The following final suggestions are proposed: choose outstanding partners for cooperation, share resources with partners, provide consulting and testing services as well as equipment leasing to clients.