Reasonable analysis on urban industrial structure and competitive power, and recognition of industrial departments with relative competitive advantages are so important for the adjustment of industrial structure and regional economic development. Based on Shift- Share analysis method, this paper analyzes the general conditions of development and changes of tertiary industry between 2000 and 2006 in Suizhou as well as 31 concrete industries of industry and service industry so as to assess the general structure and development conditions of tertiary industry and classifiy the concrete industries in Suizhou in accordance with regional competitive advantages and competitive power. The result shows that Suizhou’s tertiary industry structure was basically reasonable, its industrial competitive power was a little higher than the average level in Hubei province; many industrial sectors in Suizhou were in the rapid growth stage, which forms the regional comparative advantage. This paper finally proposes three policy suggestions on how to optimize secondary industry development, prioritize tertiary- industry and support the development of specific important industries.