Hub and Spoke Model

 


Hub and Spoke Model – A tried and tested transportation model, in which big cities are treated as Hub and other nearby locations as spoke.

In Hub and spoke model, Cost is lower but difficult to customise than in case of Point to Point model. 

The business at its nascent stage, can operate in point to point model, but depending upon the industry need, they may have to align themselves with the existing system of hub and spoke.

e.g. Airbus has exploited the model by developing jumbo A380 aircraft for transportation from one hub to other.

To my surprise, this model can be utilised in other industries such as Management Software and Social media management, where you as a hub can interact with your followers.

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