The document outlines several key challenges for companies pursuing a blue ocean strategy: 1) Product innovation requires developing new products and services that are challenging to produce and differentiate from competitors; 2) Differentiating products impacts economic growth but customers may not know about new products; 3) High costs and capital are needed for innovation, production, and training workers on new technologies; 4) Lack of expertise in new products, workforces, and technologies can harm companies; 5) Companies must quickly transfer technologies or risk large losses by falling behind competitors.

1. CHALLENGE IN BLUE OCEAN STRATEGY
PRODUCT DIFFERENTIATION COST AND
INNOVATION OF PRODUCT CAPITAL
HIGH
LACK OF
TECHNOLOGY
EXPERTISE
TRANSFER

2. CHALLENGE IN BLUE OCEAN STRATEGY
a) Product Innovation:
• Needs a high value innovation of the products or services.
• To produce a new product or service that it is a challenge for a
company.
• Innovation of products and services - differentiate their
products and services.
b) Differentiation of Product:
• Differentiate their products with other industries.
• Impact on the economic growth.
• Customer unknown their product.
• Companies that have launched innovate on their products need
to figure out whether the customer know about their new
products.

3. CHALLENGE IN BLUE OCEAN STRATEGY
c) Costs and Capital:
• Financial position the main thing that should to be taken into
account.
• Unsound financial position will give a major problem to the
costs and the capital to entering a new market.
• High capital needed to produce innovation of a new product.
• High cost is also needed to train workers in the production
process of a high-tech product.

4. CHALLENGE IN BLUE OCEAN STRATEGY
d) Lack of Expertise:
• Lack of expertise on a product to be marketed and lack of
expertise in the workforce is a challenge for the company.
• Apple company have a expertise workforce and expertise in
the field of computer technology laptop and tablet pc.
• Lack of expertise of the kodak company to produce digital
cameras give an impact to loss their company.

5. CHALLENGE IN BLUE OCEAN STRATEGY
e) High Technology Transfer:
• Company should consider and alert to transfer the high
technology.
• Late to transfer their technology it will be lead to very large
losses to the company.
• Kodak company is to late transfer their technology from film
cameras to digital cameras have given a big losses to the
company.