An important issue in real-world strategy formulation consists of deciding whether to approach strategy 'inside-out' (Start with understanding resources and capabilities,thenMove from the capabilities to meet the needs ), or 'outside-in'(Start with identifying customer needs and competitor abilities to meet them , then Move from the unmet needs to thecompany'sability (or lack thereof) to meet them)

1. What are the benefits and drawbacks of both the outside-in and inside-out approach to strategy formulation?

2. For which type of strategy questions would an inside-out approach make most sense? Conversely, in which cases would a company rather go outside-in? Why?