Slide 2 of 17
Notes:
Inside-out and outside-in are two approaches which are inversely related to each
other. Historically, as the production orientation became established, the
inside-out was used as economies of scale led to lower prices and greater
household penetration of many consumer goods. As the economies of scale became
less meaningful, and consumers had more choices, the need to manufacture products
to meet specific consumer demands took hold. Consequently, a change to outside-in
became necessary for firms to compete in the marketplace.