What does the "S" in "SWOT" analysis mean?

S stands for strength. It refers to a company's ability to outperform its competitors, or something unique to the company that increases its competitiveness. For example, when two firms are in the same market or they both have the ability to provide products and services to the same customer base, if one of them has a higher profit margin or profit potential, then this firm is considered to have a competitive advantage over the other.