ne survival of small and medium-sized enterprises (SMEs) in the current dynamic environment requires continuous strategic competence. Through systematic analysis of SMEs' strategy environment, the reason of forming hyper-competitive environment, especially the interaction between SMEs' strategy and environment, this paper studies on the methods with which the SMEs face a dynamic environment full of uncertainty, complexity and unpredictability, and proposes a feasible strategic choices for SMEs' existence-dynamic alliance, thus providing the theoretical foundation for the SMEs to make highly effective and scientific strategic decisions.