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Discussion Questions LCBSL

The document discusses 5 discussion questions about pricing strategies for LCBSL, a city bus service in Ludhiana, India. The questions address how LCBSL should respond to changes in competitors' positioning, options for generating non-transportation revenue like some airports, calculating the price increase needed to achieve a 4% return on capital, determining optimal route distances given new prices, and pricing strategies to consider over different stages of the product life cycle as expansion continues.

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Nishant Udavant
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261 views1 page

Discussion Questions LCBSL

The document discusses 5 discussion questions about pricing strategies for LCBSL, a city bus service in Ludhiana, India. The questions address how LCBSL should respond to changes in competitors' positioning, options for generating non-transportation revenue like some airports, calculating the price increase needed to achieve a 4% return on capital, determining optimal route distances given new prices, and pricing strategies to consider over different stages of the product life cycle as expansion continues.

Uploaded by

Nishant Udavant
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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DISCUSSION QUESTIONS

LUDHIANA CITY BUS SERVICE LIMITED: PRICING FOR PROFITS


1. The proposed intention to reposition LCBSL on the value map may lead
to change in competitors positioning strategies. How should LCBSL
respond to these changes?
2. The percentage of non-core business revenue has been growing at
various airports. Do you see a similar trend for city bus services such
as LCBSL? What are some feasible options for non-transportation
revenue that may immediately be implemented by LCBSL?
3. An average of INR10 from each customer generates return on capital of
1.9 per cent. Management plans to increase the return on capital to 4
per cent. By how much should LCBSL increase the average price so as
to bring the return on capital to 4 per cent?
4. Following the average price increase required to achieve a return on
capital of 4 per cent, draw a new approximate fare matrix and define
which of the following distance routes LCBSL should focus on based on
cost-benefit analysis: up to five kilometres (km), five to 10 km, 10 to 15
km, or 15 km and above?
5. With only 10 per cent of the project operational, LCBSL is still in the
introductory stage of its product life cycle (PLC). With plans to achieve
100 per cent execution by the end of 2013, what are the different
pricing strategies it should consider over the different PLC stages?

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