Selected information taken from the 2014 annual report of Aardvark Company follows. During 2014, the company had no nonoperating or nonrecurring items included in income and had no outstanding preferred stock.

($in 000,000) 2014 2013

Sales $19,903 $18,781

Interest expense 130 169

Net Income 1,153 1,088

Total Assets 12,673 12,461

Dividends (153) (131)

Equity $4,288 $4,007

Tax rate 35% 35%

Industry ROA 7.32%

Industry operating profit margin 6.10%

Required:

B. Based on the industry data provided, does Aardvark appear to have a competitive advantage (briefly explain your answer)? If so, what strategy is the firm apparently following?