BlueSigma Strategy Guide

By Dr. JWise Β· YU, LLC

Three phases. Five frameworks. Read the forces, redesign your offer, then make every change stick.

πŸ—ΊοΈ

Five Frameworks, One System

Each framework feeds the next. Start with competition and finish with lasting excellence.
Differentiate Boldly. Deliver Excellence. Improve Continuously.
Strategy Execution Continuous Improvement

BlueSigma is the model Dr. JWise built at YU, LLC. It pulls all five frameworks into a single three-phase sequence. Phase 0 (READ) uses Porter's Five Forces to find where competitive pressure is highest, then translates each force into a specific offer decision. Phase 1 (SCAN) redesigns the offer in direct response to those forces, drawing on Blue Ocean Strategy's logic of asymmetric investment. Phase 2 (LOCK) makes every SCAN decision stick using the empirical discipline of Lean Six Sigma. Each framework finds its purpose inside this sequence rather than standing alone.

βš”οΈ
Porter's Five Forces
Feeds BlueSigma READ
🌊
Blue Ocean Strategy
Foundation for SCAN
🎯
Four Actions (ERRC)
Precursor to SCAN moves
βš™οΈ
Lean Six Sigma
Powers LOCK phase
πŸ”·
BlueSigma
READ Β· SCAN Β· LOCK
0
BlueSigma Phase 0 Β· READ (Porter's Five Forces)Rate each of the five forces. Each rating tells you which SCAN move to make. High rivalry β†’ Amplify or New. High buyer power β†’ Amplify or Shed. High supplier power β†’ Shed or Compress. New entrant threat β†’ New. Substitute threat β†’ New or Amplify.
1
BlueSigma Phase 1 Β· SCAN (Blue Ocean + Four Actions)Based on what READ revealed, decide what to Shed, Compress, Amplify, and build New in your offer. Every SCAN decision is a direct answer to a force rating.
2
BlueSigma Phase 2 Β· LOCK (Lean Six Sigma)Turn each SCAN decision into a verified change. Locate the target, Observe the real number, Correct at the root, Keep a standing monitor. The Keep step watches for force shifts and triggers READ to run again.
βš”οΈ

Porter's Five Forces

Michael E. Porter Β· Harvard Business School Β· 1979
Competitive Analysis

A framework for reading the five forces that shape competition in any industry. By mapping where power sits among suppliers, buyers, rivals, new entrants, and substitutes, you can see where profit gets squeezed and where room to grow actually exists.

Industry Analysis Market Entry Profit Drivers

πŸšͺ Threat of New Entrants

How easily can competitors enter your market? High barriers like capital requirements, regulation, and brand loyalty reduce this threat and protect your margins.

πŸ”„ Bargaining Power of Suppliers

When few suppliers exist or switching is costly, they set the terms. Your costs go up and your margins shrink.

🏭 Industry Rivalry (Center Force)

The intensity of competition among existing players. All other forces either increase or reduce this pressure.

πŸ›’ Bargaining Power of Buyers

When customers have many choices or buy in large volume, they push for lower prices or better terms. Your margins shrink either way.

πŸ” Threat of Substitutes

Other products or services that meet the same need. When substitutes are easy to find, you lose pricing power.

βœ“ Advantages
  • A clear, repeatable method for reading any industry
  • Shows exactly where competitive pressure is greatest
  • Useful when deciding whether to enter, exit, or reposition
  • Easy to share with leadership because the logic is straightforward
  • Works across nearly every type of industry
βœ— Disadvantages
  • It is a snapshot. It does not account for markets that shift fast.
  • Assumes your industry has clear, defined boundaries
  • Says nothing about your internal strengths or weaknesses
  • Less useful in platform or network-based markets
  • Can push teams into defensive, reactive thinking
1
Define the market segment you are analyzingBe specific. Too broad and the picture loses meaning.
2
Rate each force: Low, Medium, or HighPull from industry reports, real conversations, and financials. Not gut feelings.
3
Find the one or two forces doing the most damageThese are what is cutting into your profitability right now.
4
Decide how to respondBuild barriers, diversify suppliers, or differentiate. Or use Blue Ocean Strategy to stop competing on the same ground entirely.

In BlueSigma, Porter's Five Forces is not just a standalone analysis. It is Phase 0 (READ) β€” the diagnostic input that tells you which SCAN moves to make before you touch your offer. Rate each force, then follow the signal.

πŸšͺ New Entrants β†’
New
πŸ“¦ Supplier Power β†’
ShedCompress
βš”οΈ Industry Rivalry (center) β†’
AmplifyNew
πŸ›’ Buyer Power β†’
AmplifyShed
πŸ”„ Substitutes β†’
NewAmplify
↻ BlueSigma's KEEP step watches for force shifts. When a force changes, READ runs again β€” which updates SCAN, which goes back through LOCK.
🌊

Blue Ocean Strategy

W. Chan Kim & RenΓ©e Mauborgne Β· INSEAD Β· 2005
Market Innovation

A theory that argues lasting success does not come from beating rivals in crowded markets. It comes from creating new market spaces where there is no competition to beat. The key idea is that you can offer more value to customers and lower your costs at the same time. Kim and Mauborgne called this value innovation. BlueSigma is built on this foundation.

Value Innovation Market Creation Non-customers

πŸ”΄ Red Ocean

Compete in existing markets. Fight for existing customers. Accept that improving value means raising costs. Win by being slightly better than rivals who are doing the same thing.

πŸ”΅ Blue Ocean

Create a market where you are the only option. Bring in customers who were not buying before. Raise the value you deliver while reducing what it costs to deliver it. Stop competing entirely.

1
Reconstruct Market BoundariesLook across other industries, buyer groups, complementary products, and long-term trends to find space no one else has claimed.
2
Draw a Strategy CanvasMap your current value against competitors to see where you look the same and where you could stand apart.
3
Go After People Who Are Not Buying YetThe biggest growth comes from people who have not found a reason to buy, not from taking customers away from competitors.
4
Get the Sequence RightStart with buyer utility, then price, then cost, then adoption. In that order. Skipping steps is where most new market moves fail.
βœ“ Advantages
  • Gets you out of head-to-head competition entirely
  • You can lower cost and raise value at the same time
  • Opens up customer groups that nobody else is serving
  • The strategy canvas gives teams something concrete to react to
  • Proven in real companies: Cirque du Soleil, Nintendo Wii, Southwest Airlines
βœ— Disadvantages
  • Competitors will eventually follow. The window closes.
  • The new market space you target might not grow the way you expect
  • You need real customer insight. Assumptions will get you in trouble.
  • Hard to pull off inside a large organization with established habits
  • A good strategy does not guarantee good execution
🎯

Four Actions Framework

Kim & Mauborgne Β· The ERRC Grid Β· The working tool inside Blue Ocean Strategy
Offer Redesign

The ERRC Grid (Eliminate, Reduce, Raise, Create) is how you put Blue Ocean Strategy into practice. It forces four decisions about every factor your industry competes on. You cut what customers do not really value and build what no competitor has ever offered. The output is a concrete redesign of your offer, not just a direction to move in.

ERRC Grid Value Curve Offer Design

βœ‚οΈ Eliminate

What has the industry always competed on that customers do not actually value? Remove it. Not a smaller version of it. Remove it.

πŸ“‰ Reduce

What are you spending on that customers barely notice? Pull back below industry standard. You are spending more than you need to here.

πŸ“ˆ Raise

What do customers genuinely want more of? Invest in it at a level that competitors would consider unreasonable. This is where customers feel the difference.

✨ Create

What has the industry never offered? There is no competitor template to copy. You build it from scratch. This is where a Blue Ocean actually starts.

ELIMINATED

Animal acts, star performers, aisle concession sales, multiple show arenas

REDUCED

Fun and humor, thrill and danger elements

RAISED

Unique venue experience, refined theatrical environment

CREATED

Narrative theme, artistic music and dance, multiple productions

βœ“ Advantages
  • Simple format any team can sit down and use
  • Gets people to question things the industry has always done
  • Cuts costs and raises what customers care about at the same time
  • Gets people talking across departments who do not normally work together
  • You walk out with a redesigned offer, not just a strategy statement
βœ— Disadvantages
  • You need real knowledge of what customers actually value, not assumptions
  • The quality of what comes out depends on the quality of what goes in
  • It does not tell you whether your team can actually deliver the new offer
  • The Create quadrant is the hardest. You cannot force a genuinely new idea.
  • Teams tend to go easy on the Eliminate quadrant. Cutting is uncomfortable.
βš™οΈ

Lean Six Sigma

Lean (Toyota, 1950s) combined with Six Sigma (Motorola, 1986) starting in the 1990s
Process and Quality

Lean Six Sigma brings two methods together. Lean removes waste and speeds things up. Six Sigma reduces errors and variation using real data. Together they make delivery faster, less expensive, and more consistent. This is the execution side of BlueSigma. Without it, a good strategy stays on paper.

Process Improvement Waste Removal DMAIC Quality Management

🏎️ Lean: Speed and Flow

Removes the 8 wastes known as TIMWOODS: Transport, Inventory, Motion, Waiting, Overproduction, Over-processing, Defects, and underused people. The goal is to do more with less and do it faster.

πŸ“Š Six Sigma: Quality and Precision

Targets 3.4 defects per million opportunities. That is 99.99966% quality. Uses statistics to find the real root of a problem and remove it for good. The goal is output you can count on every time.

D Define Name the problem, what the customer needs, and what success looks like
M Measure Collect data on the current process so you know where things actually stand
A Analyze Find the root cause using data. Not where the problem shows up. Where it starts.
I Improve Test and put in solutions that address the actual root cause
C Control Set up monitoring so the gains do not slip away once the project ends
βœ“ Advantages
  • Based on real numbers. Takes the guesswork out of where to improve.
  • Cuts costs and raises quality at the same time
  • Works in manufacturing, healthcare, finance, services, and more
  • Builds a team culture that keeps looking for ways to get better
  • Belt certifications create people who are accountable and trained
  • Strong results record. GE reported over $12 billion in savings.
βœ— Disadvantages
  • Training and certification require real investment of time and money
  • DMAIC projects take months. That is too slow when things are moving fast.
  • A culture built around metrics can crowd out new thinking
  • Built for steady improvement, not big leaps or new ideas
  • It needs leadership to fully commit or the team resists and reverts
πŸ”·

BlueSigma

Dr. JWise Β· YU, LLC Β· Integrates Porter's Five Forces, Blue Ocean Strategy, and Lean Six Sigma
READ Β· SCAN Β· LOCK Β· Dr. JWise, YU, LLC
SCAN without LOCK is wishful thinking.   LOCK without SCAN is a better version of ordinary.
βš”οΈ Porter's Five Forces 🌊 Blue Ocean Strategy βš™οΈ Lean Six Sigma πŸ’‘ Strategy Β· Execution Β· Continuous Improvement

BlueSigma is the model Dr. JWise built at YU, LLC. It integrates three traditions into one sequential model. Phase 0 (READ) uses Porter's Five Forces to find where competitive pressure is concentrated and translates each force into a directional signal. Phase 1 (SCAN) redesigns the offer in direct response to those signals. Phase 2 (LOCK) turns each SCAN decision into a verified, durable change using the empirical discipline of Lean Six Sigma. All three phases are required. The model does not end. The Keep step in LOCK watches for force shifts and sends the cycle back to READ.

READ Phase SCAN Phase LOCK Phase Continuous loop Strategy Β· Execution Β· Improvement
πŸ“‘
PHASE 0 Β· READ
Assess Porter's Five Forces before touching your offer β€” each rating tells you which SCAN move to make
πŸšͺ
Threat of New Entrants

High β†’ New   Build something imitators cannot copy

πŸ“¦
Supplier Power

High β†’ Shed Compress   Reduce supplier-dependent dimensions

βš”οΈ
Industry Rivalry (center force)

High β†’ Amplify New   Get out of the fight or outrun it entirely

πŸ›’
Buyer Power

High β†’ Amplify Shed   Give buyers a reason to stop looking elsewhere

πŸ”„
Threat of Substitutes

High β†’ New Amplify   Make substitutes irrelevant by comparison

↻ The Keep step in LOCK watches for force shifts. When a force moves, READ runs again. A new READ updates SCAN. Updated SCAN decisions go back through LOCK.
πŸ”
PHASE 1 Β· SCAN
Decide what changes β€” every move answers a force from READ
S
SHED

You stop doing it. Not less of it and not a smaller version. You table it off the table entirely.

C
COMPRESS

You keep it but stop competing with it. Less resources, less attention, and less effort than anyone else in your market puts in.

A
AMPLIFY

You pour into it. More than feels comfortable, more than your competitors would think is smart. This is where you want people to feel the difference.

N
NEW

You add something your market has never offered. There is no competitor template to copy. You build it from scratch.

πŸ”’
PHASE 2 Β· LOCK
Make each SCAN move stick with data
L
LOCATE

Write the outcome down in one sentence before you do anything else.

O
OBSERVE

Find the real number. Not what you think it is. What it actually is right now.

C
CORRECT

Trace the problem back to where it starts, not where it shows up. Then change it there.

KEEP
KEEP

Put something in place that catches slippage before your customer notices it. A check, a review, a dashboard. Something standing.

βš”οΈ READ ← Porter's Five Forces

Porter diagnoses where pressure exists but does not say what to do about it. READ turns each force rating into a directional SCAN signal. High rivalry β†’ Amplify or New. High buyer power β†’ Amplify or Shed. High supplier power β†’ Shed or Compress. The forces become instructions, not just observations.

🌊 SCAN ← Blue Ocean + Four Actions

SHED mirrors Eliminate. COMPRESS mirrors Reduce. AMPLIFY mirrors Raise. NEW mirrors Create. The logic is the same as the ERRC Grid, but SCAN is applied to a single venture's offer rather than an industry, and every decision is grounded in what READ revealed. The language removes the room to hedge.

βš™οΈ LOCK ← Lean Six Sigma DMAIC

LOCK runs parallel to DMAIC. Locate maps to Define. Observe maps to Measure. Correct maps to Analyze and Improve. Keep maps to Control. DMAIC is a full project process. LOCK is faster and built to hold each SCAN decision in place right away β€” and the Keep step watches for force shifts that trigger the whole cycle again.

🎯

Strategy

Create market space where there is no competition. SCAN decides what your offer looks like and what sets it apart.

⚑

Execution

Remove waste. Reduce errors. Raise quality. LOCK makes sure each decision from SCAN becomes a change that actually happens.

πŸ”„

Continuous Improvement

Client success through integrated excellence. SCAN and LOCK run in a loop. The gains keep building over time.

βœ“ Advantages
  • READ grounds every SCAN decision in real competitive data, not assumptions
  • The three phases answer the full sequence: what forces exist, what to change, and how to make it hold
  • SCAN forces clear decisions. There is no room to hedge.
  • LOCK stops the most common failure: decisions that look good on paper and never change anything
  • The Keep step closes the loop β€” force shifts trigger READ, which updates SCAN and LOCK automatically
  • The language is plain and direct. Works for any size of organization.
βœ— Things to Know
  • READ requires honest force ratings. Optimistic numbers produce wrong SCAN signals.
  • SHED requires an honest look inward. Teams resist cutting what they built.
  • AMPLIFY takes real resource commitment. Leadership has to mean it.
  • LOCK requires baseline numbers before any intervention is made
  • NEW cannot be delegated or scheduled. Genuine new ideas take time.
  • All three phases are required. READ without SCAN and LOCK is analysis that goes nowhere.
⭐

"Differentiate Boldly. Deliver Excellence. Improve Continuously."  Β·  BlueSigma by Dr. JWise, YU, LLC  Β·  READ Β· SCAN Β· LOCK