Hub and Spoke Structure

Cite this article as:"Hub and Spoke Structure," in The Business Professor, updated April 7, 2020, last accessed August 10, 2020, https://thebusinessprofessor.com/lesson/hub-and-spoke-structure/.

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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.

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