AbstractBritish universities have always been the market leader in recruiting Hong Kong students to study overseas or to take part in learning programmes. As the transfer of Hong Kong's sovereignty to the People's Republic of China (PRC) in 1997 approaches, some changes in market demands and incoming competitors have complicated the external environment of the market for higher education in Hong Kong. A major impetus for the incoming rivalry of the PRC is the recognition of qualifications obtained in PRC by the Hong Kong Government and continuing economic growth which in turn creates a tremendous demand for professional and managerial personnel in PRC. With the current sophisticated marketing practices and quality services to potential customers, this article attempts to provide information that may help British universities to discover their competitive edge in capitalizing on the experience and strengths of their higher education tradition and system.