Introduction Businesses are expanding as the demand of the customers is increasing. Firms seek support in the international markets through different entry modes like ventures, acquisition, licensing etc. One of successful and productive mean entring through mergers. Merger means grouping of two or more distinct businesses enterprises into a united entity where firms involved are absorbed by the dominant one among them. Evaluate merger as a market entry mode. Merger Mergers is consolidation of two or more firms. Mergers are of various types including the most common ones that are horizontal mergers (combination of firm competing in the same industry), vertical mergers (union of firms performing different operations within the same industry like acquiring the suppliers or distributors), co-generic merger (association of firms which are related in some way to each other either by sharing same business markets or alike required technologies) and conglomerate mergers (combination of firms unrelated in all ways whether kind of business or product line). Merger as a Market Entry Mergers happen to be due to various reasons. It may proceed when pursuing diversity in the offerings, elimination of competition, increase efficiency or when an existing firm strives to enter a new market. We will be focusing on the scenario where firms opt for merger while entering international markets. For any firm entering international mergers will face advantage by combining with the existing player as it will have dominance in the areas of regional expertise, experience and market influence (Belu & Caragin, 2008, p.86). The entry of an international firm with consolidation with the local one helps it in various fields like infrastructure, human resources and ingrained working relations with suppliers and distributors. Some Successful Mergers� Sony Ericsson Merger of Swedish multinational communication provider with Sony, Japan�s leading electronics manufacturer. Birla SunLife

Aditya Birla is a leading group in India what merged with Sun Life, a Canadian based financial service company. What impact could these mergers have in the international market whether in pharmaceutical industry or music industry or any other industry of your choice? The pharmaceutical markets around the world have reformed drastically over the past couple of decades due to globalization. The structure and intensity of competition has boomed and the nature of competitiveness has changed its meaning. This pushes the firms into huge investments in product innovation and R&D activities especially in pharmaceutical sector. Local knowledge Regulatory issues such as registration and intellectual property rights have gained vast importance. The reformations in the health care area globally have risen. The very nature of this industry demands any new player to have thorough command and expertise while entering international markets for the sake of massive investment injected in it. Over the past decade, consolidation of firms have resulted in a totally new alliance which have affected practically positively the global economy resulting in numerous further international mergers and acquisitions like Pfizer, GlaxoSmithKline and Sanofi-Aventis (Kesic & Bertoncelj, 2008, pp. 81). The local expertise of one of the consolidated firm assist in dealing with the domestic issues and local environmental effects. Infrastructure and workforce of the firm acting as the host may also prove to be beneficial for the other as they do not have to set up everything from scratch. Existing suppliers and distributors of the firm being merged with provide a well-established platform to the firm entering a new market. It also cuts down theR&D and other expenses. Increasing Brand Names

The study shows that the global competition has tremendously risen demanding the firms within the pharmaceutical industry to react in an efficient and productive manner to counter global competition, server international customers and retain brand loyalty. Nyagah (2007) discusses that merged companies offer more range of drugs and perceived lesser cost which attracts most of the doctors. This enables a brand to increase due to merging and getting recommendation from the practicing professionals.Pharmaceutical firm globally come together for several reason including market and geographic expansion and generating new products. Greater Profits & Market Share Resceanu (2010, pp. 510) shows that markets react positively to the announcements of mergers and acquisitions. In the study, it has been determined that the effects of merger announcements create synergy and leaves impact on stock prices of the involved firms as well as their peers in the industry. Since the stakeholders are aware of this information, it strengthens the market portfolio of the firms increasing its net worth. Stock markets react positively to merger announcements increasing the market share for the merging entities and letting outclass the other firms competing after merging proving that mergers result into a pre-condition of improved market cap and post-condition of enhanced operating performance (Andrade, Mitchell & Stafford, 2001, pp. 105). Mergers allow firms to capture greater market shares and increasing growth in sales. The median approach shows that the firms getting into megamergers reap 5% more return than the other entities within the industry Some Major Pharmaceutical Mergers

A merger may be for glory and praise for the firms directors and top level management as it may be a disappointment when it comes to making strategies now globally. Strategies now require a broader perspective since now international firms are involved with different competencies. Top managers may even indulge themselves too much focusing about mergers causing them to neglect and let go the core activities and strengths of the business which should be considered in the first place since that�s the reason to unite. Manager must realize that though mergers cause them to strengthen the company, but at the same time the freshly merged entity is at a vulnerable stage so it must quickly ground its operations and utilize all potential opportunities. The consolidated firm does not approach forward to develop new drugs and content itself to the achieved only (Horrobin, 2000, pp. 343) Loss of Revenue Sometimes, the merging companies are too keenly putting their concentration in costs cutting so they can put that money in mergers, while revenues are ignored which eventually affects net income. The companies ignore their day-to-day activities while their too much focus is how to integrate into new markets or how to cut cost. In this way they forget that for the shareholders, it is the bottom-line (profit) that matter. If the companies show reduction in their revenue, certain stakeholders may be driven away causing trouble for the merger to take place in near future. Difference in Corporate Cultures When two or more international entities come into play, it is expected that their corporate cultures are varying. Management may overlook the personal matters of employees and work preferences assuming that these can be overcome and it may ignore cultural differences. However, this mistake can cause the game to bounce back since productivity may lessen. For example, employees of one of the merged firms are habitual of working flexible work hours, relaxed dress code and democratic leadership, but the new management discourages all of these. It may not be a big deal for the new management as they may be practicing differently but it can result in reduction in productivity and resentment from the current employees becoming a challenge in a newly merged company. Redesign Required Merger may have aroused the need for redesigning, however, it if it is still unrealized by the executives, then the business may collapse. As the environment and functions change, the requirement to redesign is essential. The supplychain is also needed to be design and re-organize especially if internationalal suppliers and distributors are involved. Conclusion