How can a "hybrid" TOWS strategy work?

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.