Can you be in the middle of the TWOS matrix?

As argued by Porter, there is a fundamental trade-off between cost-leadership and differentiation (with or without focus). Firms cannot do both. Doing both creates the danger of stuck in the middle, and then you are not good at any (Hence, you lose competitiveness). But… some companies manage both e.g. Southwest Airlines, is low-cost, but is (was) also differentiated in terms of frequency and customerrelations.“Hybridstrategy”seems possible in some instances. Example of how low cost and differentiation can work: 1. Differentiation increases cost 2. But, differentiation increases demand (Broader appeal, price inelasticity, brand loyalty)  Sales volume increase 3. Unit costs fall with increasing sales volume (Economies of scale, economies of scope: Learning effects) 4. Differentiation leads to lower unit costs because sales volume rise 5. Diagram: Profit goes from abcd to aegf 6. BOOM! Differentiation and low cost goes hand in hand here.