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In this video tutorial by John from Excel Campus, the focus is on using groups and outlines in Excel. He demonstrates this using a formatted income statement, showing how to collapse and expand grouped rows using buttons on the row headers. To create a group, users must first select the desired rows, then navigate to the Data tab on the ribbon and click the group button in the Outline section. Once the group is applied, it allows for easy collapsing and expanding of the grouped rows. This function is also applicable to columns, enhancing data organization and visibility in Excel.