hereas viewed from CG theories point ofhereas viewed from CG theories point of

hereas in mergers a merged body corporate
is created and is a single unit in case of alliances the individual firms
remain independent. In terms of duration the two  differ in that the alliances are temporary
whereas mergers and acquisitions are definitive. In addition in case of mergers
the management enjoys higher amount of control over the merged firm as compared
to strategic alliance. An instance of strategic alliance is the launch of
mobile transfer and payment service’ m pesa’  ICICI bank and Vodafone India. In Indian
context the Flipkart acquisition of Indian arm of ebay and Freecharge ‘s acquisition
by Axis Bank represents illustration of merger and acquisition. Mergers and
acquisitions are essentially at a disadvantage on two grounds-one the company
that is in the process of acquiring ,acquires more than it wished to in the
initial stage at an increased price second the key  resources  and competencies that formed the bases of the
acquisition are lost when the process of takeover concludes (Doz & Hamel, 1998).M s denote a majority or controlling stake in the firm
whereas an alliance does not denote it.The managerial as well as financial
resource commitments are higher for M.The strategic alliances however
see more flexibility in terms of strategy(Doz & Hamel, 1998).

As far as strategic alliances are concerned
it is known that efficiency considerations alone do not cause firms to form
such alliances but it is also strategic and social factors that govern them to
do so (Eisenhardt & Schoonhoven, 1996). Strategic alliances cover several types of relationships such as joint
ventures,partnerships, strategic alliances,equity partnerships, franchise
alliances as well as licensing agreements (DePamphilis, 2012).There is a growing tendency for firms to start having strategic
alliances due to competition  among firms
(Yuan & Wang, 1995). Strategic alliances are viewed from CG theories point of view and
are described as reform and correction of the inefficiencies (Masulis, Wang, & Xie, 2007)

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