Dave Johnson, Cokes Financial Director, returned from a meeting with the following comparative financial data, which was carefully verified:

2001 comparative financial information for the Italian market
	Coke	Pepsi	Regional Brands
Domestic soft drink sales (000)	$ 22,632	$ 25,744	$ 158,030
COGS (on soft drinks only)	78%	70%	85%
Average price per equivalent unit (in $)	6	10.5	3.5

He tells you that he is very concerned that Pepsi is achieving both higher average prices and has lower costs. On the other hand, he was relieved to see that regional brands tended to be high-cost producers. Use the above data to perform a quantitative value-based strategy analysis and use your analysis to advise Mr. Johnson on the nature of Coke's competitive advantage, or lack thereof, relative to both Pepsi and Regional Brands.