The purpose of this study is to analyze the case of some companies with strong international competitiveness in the software industry among the non-manufacturing industries. Targets of case study are Midas IT and Function Bay, both SMEs in CAE software area. Midas IT is a company that has strength in the construction software, and Function Bay is regarded as a firm specializing in the mechanical software. From the case study, four commonalities and implications were derived. First, both companies have tackled the small business area in which they have strong competence among overall software industry. This can be interpreted as a differentiation strategy in a narrowly defined business domain. Second, two companies have stressed the importance of demand values of consumers rather than their technological capability in promoting technology innovation. This can be explained by the concept of customer-based innovation. Third, two SMEs have attempted to enter the overseas market from the beginning of the business in place of the small and highly competitive domestic market. This implies that the born global strategy has also been observed in small businesses of the service industry or the software industry. Fourth, we found that the competitiveness of the industry as a whole and the competitiveness of some areas and companies are different. As is in Japanese film industry, the whole industry is not competitive at all, but some sectors and leading firms are highly competitive.