---
entity_slug: market_driven_division
entity_type: Process
vsm_system: S2
type_rationale: Market-driven division is described as "the process by which" markets
  determine specialization patterns, indicating an ongoing activity or transformation
  rather than a static entity.
vsm_rationale: This process operates through market signals and exchange mechanisms
  that coordinate how producers respond to demand and costs, functioning as the anti-oscillation
  system that aligns production specialization with market conditions.
classified_at: '2026-02-23T11:12:50.839962'
---

# Classification: Market Driven Division

## Entity Type

Process

## VSM System

S2

## Type Rationale

Market-driven division is described as "the process by which" markets determine specialization patterns, indicating an ongoing activity or transformation rather than a static entity.

## VSM Rationale

This process operates through market signals and exchange mechanisms that coordinate how producers respond to demand and costs, functioning as the anti-oscillation system that aligns production specialization with market conditions.
