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This is the first of a two-case series (504-029-1 and 504-030-1). WESTEL, the market leading company in the fast growing, oligopolistic mobile telephone market in Hungary, has to craft defence to maintain its position when Vodafone threatens with a yet unknown entry strategy, price competition or image-based differentiation may be expected from the new entrant. Management has to decide on pre-emptive moves, as well as intensity and timing of defence. The case demonstrates the nature of innovative growth strategies in a fast growing high-tech market, and provides insights into market evolution and the balancing between profitability and growth. The case is supported with extensive market and financial data. In the accompanying video (504-029-3), market dynamics and actual competitive actions are explained with the CEO of WESTEL. The case can be used in courses on marketing, international marketing and competitive strategy. Part (B) provides information about strategic actions and market developments up to the end of 2001.