Abstract: This paper trys to sum up the theoretical logic of the activation of the cultural tradition in China Time-honored Brand(CTHB), and architecture a SAIC model based on exploring the vertical evolution of strategy, cultural tradition, innovation and ability in order to illustrate how cultural tradition forms capability. According to this research framework, this paper provides a case study on the representative Chinese time-honored brand Shanxi Xinghuacun Fenjiu Group for 1948-2017 years in terms of cultural tradition activation. The conclusion shows: Discretion View is the basic strategic view, it is need of adopting the marker situation, and prompts CTHB achieving resources construction; gives a SAIC model, which means that strategic evolution triggers the activation of cultural tradition, and the activation of cultural tradition with resources vigilance and resources construction inspires the innovation of technology, system, culture and market, then the ability is accumulated and promoted, and the ability will also be fed back to the strategy; CTHB's cultural tradition reconstruction need to search "sleeping resources" through "crossing the historical barriers", it is an organic unity of traditional technology, quality, brand and culture; different stages of development correspond to different strategies, cultural traditions, activities, and abilities, at the same time, the innovation system has experienced the change of single innovation to combination innovation. The contribution of this paper lies in: to enrich the theoretical basis of strategic evolution, summarize the evolution of CTHB's strategy, cultural tradition, innovation and capability, construct the core of cultural tradition, give a pioneering analysis of the activation mechanism of cultural tradition and put forward the SAIC model, provide some management advice caused by this case, also provide theoretical support and practical guidance for CTHBs catching-up and beyond.