The compatibility of outside-in and inside-out strategic approaches

The aim of this chapter is to reveal the compatibility of the most important strategic approaches. Moreover, through a critical discussion of the key literature relating to the issue and a business case analysis, the author will suggest a preferred flow of strategic analysis in a business case, based on the compatibility of strategic approaches. The epistemological stance of the author is critical realism. The two most important strategic approaches in strategic management are the outside-in and inside-out. The author argues that there is enough evidence as theoretical findings and practical implications that the outside-in and inside-out approach in strategy could be compatible. Among the evidence, the central point is dedicated to the business case of HIP Petrohemija, as a fine example of why the approaches are compatible, as well as the proper flow of strategic analysis. The chapter suggests that the flow of strategic analysis in strategic marketing should start with the outside-in environmental analysis, in order to understand the opportunities and boundaries of the market and discover a fit on market, and then it should continue with the inside-out internal audit, in order to find out the inner capabilities and the core competence.