Why do bullies create an 'in' group and an 'out' group?

Bullies create an 'in' group and an 'out' group in order to establish their dominance and power over others. By creating these groups, bullies can manipulate and control their peers, and create a sense of exclusivity and superiority among themselves. This helps them to feel more powerful and in control, while also allowing them to isolate and target those they perceive as weaker or different. Ultimately, this behavior stems from a desire to assert control and establish a hierarchy within their social circle.