The case provides the comprehensive picture of the Hong Kong Land Holdings Company. The HKL company was incorporated in the late 19th century and since then has been one of the, major players in the real estate market. The company deals with the renting as well as the sale of properties, apartments as well as office spaces. However with the passage of time the company has been facing problems pertaining to the aging of its assets and its products that are offered to the customers in the market and the changing dynamics of the real estate industry.
The focus of HKL has been the centre ofHong Kongwhich is the heart of its financial sector. The new entrants in the real estate market however established new financials sectors inHong Kongwith the high rises in the 1990s making the industry a very competitive one. As a result the company started feeling the pressure in the market. The main three reasons that were attributed the changes in the dynamics were the increase in the economy of the region, the change sin the structure of the economy of Hong Kong as well as the increase in the presence of international and foreign companies providing similar products and services to the consumers in the Hong Kong as well as the main landChina. Moreover the agreement ofChinaentering the WTO, the pedestrian bridge system and the new properties available in the market made the consumers aware of the choice available to them at much cheaper rates than what HKL had been offering its tenants and buyers.