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In this tutorial, Bob Blitzer demonstrates two ways to format cells in Microsoft Excel: manual formatting and using styles. Manual formatting involves selecting cells and applying fonts, colors, sizes, and alignments, while using styles offers built-in or customized styles. Advantages of using styles include faster application and ensuring consistency in formatting, reducing room for human error. Styles are familiar to users of programs like Microsoft Word and docHub, making them a helpful tool for efficiently formatting cells in Excel.