al distribution of income involving the fact that 10 percent of the population controls 30 percent of household revenues argues against the likelihood that the citizens of Jordan would be willing to deliver a significant portion of their annual earnings to acquire a PC. For most Jordanians, the purchase of the PC for home use would not be considered as a minor purchase. This factor suggests that Dell use a marketing approach that focuses on selling personal computers to companies, to educational institutions and to government entities. This appears to be a better marketing strategy than one focusing on the consumer market.
2. Cost Estimates: For Dell, production costs in Jordan might be lower than in other developing countries thanks to the efforts of the Jordanian government to attract foreign investment and in particular investments made by high technology and information technology based companies such as Dell through a cost sharing program offered to qualified business such as Dell. The Jordanian government's willingness to offer incentives to Dell to build new production facilities in Jordan and to train Jordanian citizens for jobs in high technology manufacturing would be likely to drive production costs down at least in the short term. Given the information provided in the CIA briefing on Jordan, it seems likely that labor costs would be relatively low. The cost of land would also likely be inexpensive relative to more developed countries. Therefore, when contrasted with manufacturing costs in a country such as the United States, Jordan would appear inexpensive.
3. Demand Analysis: As shown previously, demand seems to have leveled of at around 100,000 PCs per year. It seems likely that demand for personal computers will remain relatively stable in the short term even of the PCs are manufactured domestically in Jordan. If Jordan's efforts to improve the efficiency of the government, and to reduce the federal deficit...