Abstract:

The paper considers the case of the BeeLine brand in the context of the rapid changes in the market situation in the Russian telecom industry before and after the financial crisis of 1998. The BeeLine story exemplifies the diffusion of the innovation model in general, and with regards to specifics of Russia as a country with an unstable economy, highly uneven income distribution and belated technological modernization. The BeeLine case highlights the role of brand image as it applies to the provider brand, specifically in terms of re-defining notions of leadership and prestige along with the widening customer base for mobile phones. The competitive situation in the Moscow cellular market also reflects the dynamics of relationship between a brand leader and a challenger brand.