Can you briefly explain the concept of Blue & Red Ocean Strategy?

We use the terms red and blue oceans to denote the market universe. Red oceans are all the industries in existence today - the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Hence, the term "red" oceans.

Blue oceans, in contrast, denote all the industries not in existence today -- the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. Like the "blue" ocean, it is untouched, vast and deep in terms of profitable growth. Blue ocean strategy provides a systematic approach to break out of the red ocean of bloody competition and make the competition irrelevant by reconstructing market boundaries to create a leap in value for both the company and its buyers. Instead of competing in existing industries, blue ocean strategy equips companies with frameworks and analytic tools to create their own blue ocean of uncontested market space. The book, however, tackles not only the challenge of how to create blue oceans, but also the equally important challenge of how to execute these ideas in action in any organization.

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In order to understand the vision and mission concept, I am presenting my companys example so any one can understand it.
VISION NAVKAR We visualize ourselves as a global leader in providing services for all the domains and departments in Financial Securities and assets markets having the highest proportion of satisfied customers for all the departments. We see ourselves as the best employer in the same industry. MISSION NAVKAR Young, business class, service people, HNIs & MNIs interested or interest oriented in securities and commodities markets are the best suited for providing the quality & premium services and customized solutions of Navkar. Company's services and the costbenefit an investor receives at Navkar is not competable with many "mom and pop" home based or local service providers and in fact, they will be its business partners or else will be acquired by us. Company is dedicated to provide the highest quality services, meeting the agreed delivery dates & time, executing the demanded and promised services efficiently, providing the most effective research for the clients and over taking the customer expectation by buying customer satisfaction at any cost but with sticking to the legal norms, our policies, values and ethics. And for achieving this, the company can never afford to miss to chase the satisfaction level of our employees which are the major most pillars and asset of us, that's why the company will always attempt to exceed the expectations of its employees by providing such a satisfactory work environment and employment.

The strategy hierarchy

In most (large) corporations there are several levels of management. Strategic management is the highest of these levels in the sense that it is the broadest applying to all parts of the firm - while also incorporating the longest time horizon. It gives direction to corporate values, corporate culture, corporate goals, and corporate missions. Under this broad corporate strategy there are typically business-level competitive strategies and functional unit strategies.

Corporate strategy refers to the overarching strategy of the diversified firm. Such
a corporate strategy answers the questions of "in which businesses should we be in?" and "how does being in these business create synergy and/or add to the competitive advantage of the corporation as a whole?"

Business strategy refers to the aggregated strategies of single business firm or a

strategic business unit (SBU) in a diversified corporation. According to Michael Porter, a firm must formulate a business strategy that incorporates either cost leadership, differentiation or focus in order to achieve a sustainable competitive advantage and long-term success in its chosen arenas or industries.

Functional strategies include marketing strategies, new product development

strategies, human resource strategies, financial strategies, legal strategies, supplychain strategies, and information technology management strategies. The emphasis is on short and medium term plans and is limited to the domain of each departments functional responsibility. Each functional department attempts to do its part in meeting overall corporate objectives, and hence to some extent their strategies are derived from broader corporate strategies. Many companies feel that a functional organizational structure is not an efficient way to organize activities so they have reengineered according to processes or SBUs. A strategic business unit is a semi-autonomous unit that is usually responsible for its own budgeting, new product decisions, hiring decisions, and price setting. An SBU is treated as an internal profit centre by corporate headquarters.