Hub and Spoke Structure - Explained
What is the Hub and Spoke Structure?
Written by J. Mance Gordon
Updated at April 21st, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Hub and Spoke Structure?
Hub and spoke structure is an operational structure. The primary business center is the central hub. The spokes are lines of business or operations that extend out from the central hub. For example, an airline might center its operations (headquarters and operational units) at a specific airport. This is the central hub. Its flights originate and return to that central hub. These flights are the spokes. Hub and spoke structure is used in the transportation, aviation, investment, business, finance, and other industries. The major advantages of a hub and spoke structure include operational efficiency.