Coach Glenn Moore believes the Highlanders have the ability to win but it comes down to a few critical moments during the 80 minutes of play which are not going their way.
Moore pointed to a charged-down kick which led directly to a Blues try and several bad kick-offs which, in the end, were crucial.
"When we got past four phases we were looking dangerous but there were critical moments in the match which cost us," Moore said.
"They counter-rucked us a couple of times and that really hurt us and then there were a couple of kick-offs which allowed them back into the game straight after we scored."
Missed penalty kicks also hurt the side.
Michael Hobbs missed two reasonably straightforward penalties which would have given the side momentum at vital stages.
Moore was pleased with the Highlanders' set-piece play and the defence when lock Josh Bekhuis was yellow-carded.
But he said the side did not get enough continuity into its game.
The Highlanders, who picked up a bonus point, now head to South Africa for a three-match tour.
"We have got to go over there with a positive mind-set and we know there is something there.
"It's about going over there, regrouping, doing the right things during the week and putting on a good performance."
The 26 players to go to South Africa will be decided today, with the squad due to leave tomorrow.
Two players will be left behind.
Captain Jimmy Cowan suffered another blow to his face but Moore said he should be all right to go to Africa.
There were no other major injury concerns.
Blues captain Keven Mealamu said the match was a torrid encounter which he expected.
There was a feeling of relief the Blues had their first win but the game could have gone either way, he said.
Highlanders v Blues
The scores
Blues 19
- Paul Williams 2, Rene Ranger tries, Stephen Brett 2 conversions.
Highlanders 15
- Israel Dagg, Michael Hobbs tries, Hobbs conversion, Dagg penalty goal.
Half-time: Highlanders 12-7.
Crowd: 7000.
