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BCG Medium Market Sizing Merger & Acquisition Strategic Decision

Jurassic Vale

#Media & Entertainment
ProHub Comment

This case tests market sizing and valuation skills in an unconventional context. The candidate must estimate visitor traffic to Disneyland, calculate incremental revenue from the dinosaur attraction, and apply perpetuity valuation logic. The case also evaluates business judgment by considering risks (legal, reputational, ethical) alongside financial optimization.

Estimated Time 26 minutes
Difficulty Medium
Source Wharton
38 / 100
Vale is a Brazilian multinational corporation engaged in metals and mining and is the largest producer of iron ore and nickel in the world. A few weeks ago, Vale won a public tender to exploit a mine in the province of Manaus in the Brazilian Amazon, and during the exploratory stage, a team of engineers discovered a dinosaur. The company has contracted a project with your team to figure out what to do with it.

Clarifying Information

  1. The dinosaur is an alive male Tyrannosaurus rex that’s 13 meters long
  2. He is young and can likely still live for the next 100 years
  3. He eats a lot of grass daily but its cost is negligible
  4. His veterinary expenses are negligible and he is quite calm, does not seem aggressive with humans
  5. For now, his discovery has been kept strictly confidential
  6. There is no current legislation that prohibits its sale or commercial exploitation
  7. There is no known female and the dinosaur seems to be able to live with little space
Mock Interview
Interviewer

Vale is a Brazilian multinational corporation engaged in metals and mining and is the largest producer of iron ore and nickel in the world. A few weeks ago, Vale won a public tender to exploit a mine in the province of Manaus in the Brazilian Amazon, and during the exploratory stage, a team of engineers discovered a dinosaur. The company has contracted a project with your team to figure out what to do with it.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

Vale discovers a living dinosaur during mining operations in the Amazon and needs to decide how to monetize it. The framework evaluates entertainment vs. non-entertainment uses, with the recommendation to sell to Disney based on financial valuation (up to $1.6B) and risk mitigation.

Key Insights:

  1. Market sizing requires multiple estimation methods (airport passenger flows, conversion rates, tourist patterns)
  2. Valuation of unique assets uses perpetuity formula (PV = C/r) with appropriate risk discount rates (50% used here)
  3. Strategic recommendations must balance financial upside against non-financial risks (public opinion, legal consequences, ethical concerns)
  4. Interviewee-led format requires candidate to drive questioning and framework development with minimal hand-holding