Design Thinking for Creativity

A1 DT Proposal
Name: Truong Thai Truc Phuong
Student ID: 22178612
Lecture: Tran Pham Quynh Nhu
Unit number: BUSM3006 - DTC-T125WSB-2
March 2nd, 2025, Viet Nam campus

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TABLE OF CONTENT

1. Introduction.......................................................................................................................... 3
2. Problem identification..........................................................................................................3
3. IDEO 3I model......................................................................................................................4
3.1 Inspiration.......................................................................................................................4
3.2 Ideation...........................................................................................................................5
3.2.1 Proactive in battery production............................................................................. 5
3.2.2 Increase the number of charging stations and add additional features..................5
3.2.3 Add hybrid vehicle line......................................................................................... 5
3.3 Implementation...............................................................................................................6
4. Personal development.......................................................................................................... 6
5. Demonstrate how empathy can influence recommended strategies................................ 6
6. Empathy map........................................................................................................................7
7. Reference List....................................................................................................................... 8
8. Appendix............................................................................................................................... 9

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 1.​ Introduction
The development of high-technology industries has opened up many opportunities for
humanity. However, it also poses many challenges in maintaining the sustainability of
existing values, including environmental sustainability. According to data from Ritchie and
Roser (2024), air pollution is consistently among the top causes of death in humans yearly.
Ritchie, Rosado, and Roser (2023) also show the severity of the increase in emissions and
greenhouse gases leading to global warming over the past 200 years (Appendix A).
Therefore, taking specific actions to minimize environmental impacts is extremely necessary,
and replacing fossil fuels with alternative fuel sources is always a breakthrough initiative, as
evidenced by the emergence of Tesla in the United States as a pioneer in improving and
replacing conventional vehicle fuel sources with electric energy sources, which are more
sustainable and receive substantial government support.

2.​ Problem identification

Tesla is a pioneer in electric vehicle manufacturing, with a market share that spans the world.
However, in recent years, that position has been shaken by the emergence of many
competitors from around the world jumping in to compete for the sustainable energy industry,
typically the appearance of BYD, which has usurped Tesla in the Chinese market to become
the leading electric vehicle supplier. According to Zhang (2025), BYD's market share in the
NEV (neighborhood electric vehicle) industry in 2024 has wholly surpassed Tesla with a
market share of 34.1%, while Tesla has only 6% (Appendix B), this is a sign that Tesla is
gradually showing signs of falling behind new competitors in the billion-people market,
stemming from many reasons. First, the EV market in the world, in general, and China, in
particular, is relatively new, so selling an electric car product at a reasonably high price does
not seem attractive to consumers, as has happened to Tesla. Compared to BYD car models,
the average price to own a Tesla car is 2-3 times higher, with the lowest price for a Tesla car
being approximately USD 42,000, approaching the price of BYD's highest-end car model of
USD 43,000, according to Cheng, n.d. In addition, BYD also offers many price options
through different car models to optimize consumers' affordability, helping them to choose to
buy electric cars at a suitable price, in contrast to Tesla, which only focuses on the high-end
consumer segment with high spending levels, which is not ideal in a country where the

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middle-class accounts for the majority of the population, Huld and Interesse (2023). Second,
in terms of vehicle production, unlike BYD, Tesla only focuses on one type of pure electric
vehicle. In contrast, BYD focuses on hybrid cars, bringing more convenience to consumers
when the current infrastructure is still not fully capable of serving pure electric cars.

3.​ IDEO 3I model

To solve the problem, IDEO's 3I model is applied as a stimulus to help solve the issue based
on the proposals of feasible solutions, Fei, (2024).

3.1 Inspiration
Inspiration is the process of feeling and perceiving the problems that are happening to create
and find solutions. It includes collecting information and gathering ideas, creating the premise
for a new solution. To do that, the brand aims to have an accurate and authentic customer
information database, and market research surveys are one of the most optimal options. By
conducting demographic research to understand the changing values ​and needs of electric
vehicle consumers in the Chinese market, Tesla can better understand what customers are
looking for and expecting from the brand, thereby making improvements to serve the needs in
a better way to compete with BYD. Furthermore, empathy interviews also provide a clearer
view of the difficulties customers are facing, such as price or shortcomings in the operating
range and charging accessibility of pure electric vehicles, as mentioned in SCMP (2024)

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3.2 Ideation
3.2.1 Proactive in battery production
The high selling price of Tesla products partly comes from the high cost of batteries due to
dependence on third parties, with nearly 40% of the supply coming from China, Nikkei Asia
(2023). In contrast to Tesla, BYD can produce its batteries, it brings initiative in battery
sources, significantly reducing production costs. Therefore, with its vast resources, Tesla can
thoroughly consider researching and producing batteries itself to reduce battery rental costs
and optimize production costs, Nelson et al., (2015), thereby contributing significantly to
reducing selling prices, helping Tesla reach more customer groups in the billion-people
market, especially the middle class.

3.2.2 Increase the number of charging stations and add additional features
In addition to producing its batteries to reduce the selling price, thereby providing new
consumers with a more reasonable price, Tesla should also consider improving the operating
range and the number of charging stations. As mentioned, most Chinese people are concerned
about buying pure electric cars partly because the number of charging stations is still limited,
especially in rural areas, which raises concerns about the vehicle's performance, Hankin
(2024). Therefore, investing in more charging stations in rural and minority areas can
increase customer satisfaction and ensure continuous operation. The feature of locating the
nearest charging station can be an added value to help users more conveniently find charging
stations, thereby optimizing the journey.

3.2.3 Add hybrid vehicle line

While convincing people to switch to pure electric vehicles, Tesla can consider adding hybrid
vehicles to its product line to target a broader customer base. According to Statista (2025), the
market trend has been increasing rapidly in the use of hybrid vehicles in recent years as a
transition from traditional gasoline vehicles to electric cars before the infrastructure for pure
electric vehicles is ready in the future. Therefore, producing more hybrid cars and paralleling
the production of pure electric vehicles to diversify the product line, giving customers more
choices, will be an optimal move in competing for market share with BYD, helping Tesla
increase its influence in the electric vehicle market.

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3.3 Implementation

4.​ Personal development

(Appendix C)

5.​ Demonstrate how empathy can influence recommended strategies.

Empathy plays a vital role in thinking and creating. By putting ourselves in the customer's
shoes to understand and sympathize, the brand will better understand what customers need to
provide a comprehensive solution, improving customer service. Typically, through analyzing
the typical customer profile, Wei Chan, shows that Tesla's decline compared to BYD comes
from the fact that the infrastructure for pure electric vehicles is still limited in China or the
purchasing power of Chinese people is still limited. Understanding that Tesla can reevaluate
and come up with solutions to address the above shortcomings, including producing new car
models or optimizing selling prices to better access the market.

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6.​ Empathy map

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 7.​ Reference List

Cheng, Y. (n.d.). Available at:

https://www.ewadirect.com/proceedings/aemps/article/view/6067/pdf#page=3.36.

Fei, C. (2024). Design Thinking Models and Tools to Support the Design Process. Lecture
notes in educational technology, pp.49–77.
https://doi.org/10.1007/978-981-97-0076-9_4.

Huld, A. and Interesse, G. (2023). The Middle Class in China - Growth, Policy, and
Consumption. [online] China Briefing News. Available at:
https://www.china-briefing.com/news/china-middle-class-growth-policy-and-consump
tion/.

Nelson, P.A., Ahmed, S., Gallagher, K.G. and Dees, D.W. (2015). Cost savings for
manufacturing lithium batteries in a flexible plant. Journal of Power Sources, [online]
283, pp.506–516.
https://doi.org/10.1016/j.jpowsour.2015.02.142.

Nikkei Asia (2023). Tesla Relies on China for 40% of Battery Supply chain: Analysis.
https://asia.nikkei.com/Business/Automobiles/Tesla-relies-on-China-for-40-of-battery
-supply-chain-analysis.

Ritchie, H. and Roser, M. (2024). Air Pollution. [online] Our World in Data. Available at:
https://ourworldindata.org/air-pollution.

Ritchie, H., Rosado, P. and Roser, M. (2023). CO2 and Greenhouse Gas Emissions. Our
World in Data. [online] Available at:
https://ourworldindata.org/co2-and-greenhouse-gas-emissions.

South China Morning Post. (2024). South China Morning Post. [online] Available at:
https://www.scmp.com/business/article/3283679/tesla-pure-ev-king-chinese-drivers-pr
efer-hybrids-they-worry-about-range?module=perpetual_scroll_0&pgtype=article.

Statista. (2025). Plug-in Hybrid Electric Vehicles - China | Market Forecast. [online]
https://www.statista.com/outlook/mmo/electric-vehicles/plug-in-hybrid-electric-vehicl
es/china.

Zhang, P. (2025). Automakers’ share of China NEV market in 2024: BYD tops with 34.1%,
Tesla 3rd with 6.0%. CnEVPost. [online]
https://doi.org/10192253/2025011011225391

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 8.​ Appendix

Appendix A

Appendix B

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Appendix C

Name: Wei Chan

Demographics:

-​ Age: 40 years old

-​ Income: USD 250,000/ year
-​ Location: Shanghai, China

Psychographic and Behavioral

-​ Lifestyle:
+​ Sustainability and eco-conscious
+​ Favors premium products that incorporate cutting-edge technology and design

-​ Interest:
+​ Travel
+​ Passionate about new technology and environmental protection

-​ Value:
+​ Support technological innovation and digital connectivity in everyday life
+​ Look for brands that align with their values, prioritizing corporate social responsibility
(CSR) and transparency

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