Ludhiana City Bus Services Limited: Pricing for Profits Harvard Case Solution & Analysis

Ludhiana City Bus Service Limited (LCBSL) is established to improve the urban transportation system in the city of Ludhiana, India. As per the prevailing pricing strategy, bus fares (one of crucial revenue source for LCBSL) were set by the state government. LCBSL management was convinced that there was considerable scope for increasing the bus fares.

Ludhiana City Bus Services Limited Pricing for Profits Case Solution

The partial project implementation had been generating a return on capital of 1.9 per cent. To reduce this breakeven interval and reach targeted returns on capital of 4 per cent, management was contemplating the alternative to improve fares across different distance categories. Would this price restructuring be a benchmark pricing strategy for other city bus service projects to check out as well as a game changer for LCBSL?

PUBLICATION DATE: May 26, 2014 PRODUCT #: W14182-HCB-ENG

This is just an excerpt. This case is about SALES & MARKETING

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