A model of know ledge2based o rgan izat ion compet it ive st rategy is p resen ted in th is paper. In sect ion one, w e def ine an o rgan izat ional know ledge space f irst ly. O rgan izat ional know ledge is a comp lex、open and self2o rgan izing system , so w e def ine an o rgan izat ional know ledge space f rom such dim en sion s as layer、con ten t and appearance to iden t ify o rgan izat ional know ledge bet ter. W e discern almo st all k inds of know ledge in en terp rise and list them in fo rm. In sect ion two, w e begin w ith know ledge st rategy analysis. By decompo sing th ree k inds of typ ical funct ional know ledge p rocess and adap t ing an imp roved w ay to assess know ledge capab ility, w e can evaluate know ledge2based o rgan iza2 t ion capab ility space in compet it ion. A s an examp le, the funct ional know ledge on m anufactu ring is di2 vided and evaluated to illu st rate th ism ethod in detail. A t last, th is paper gives som e compet it ive tac2 t ics on know ledge m anagem en t acco rding to differen t know ledge capab ility space