The case provides that the HKL was facing intense competition from both the local as well as the international companies investing in the real estate market and offering products which were much more modern, updated and suitable to the requirements of the customers in the market. Moreover the companies were also offering these products to the customers at much lower cost. Additionally the decision ofChinato enter the WTO made the market for real estate inHong Kongmuch more competitive as the industry sector was now exposed to restrictions and policies as per the dictation of the WTO and the aggressive international competition the membership has to offer.
The company has to remodel and refurbish its old and aging properties. The company made a point to concentrate on the central district which was the financial heart ofHong Kong. This enabled the company to attain a high profile target for its products. Moreover the remodeled and the refurbished assets of the companies brought in new customers who were much more happy, and content with their livening and working space. The company as a result made itself competitive and sustainable by revamping its portfolio of product and service offering, remodeling and refurbishing its sound building and demolishing its outdated and extremely old assets for investment on new projects in the same locations.
Additionally the company also had to make decisions pertaining to rethinking its focus on its product portfolio in order to make HKL a competitive business in the region, especially with the absence of the parent company which had shifted its headquarters toLondon.