Abstract: Considering the uncertain demand, the impact of the competition of two heterogeneous supply chains, an incumbent and a new venture, on the strategies of matching the supply and demand are studied using Bertrand model. Equilibrium prices, equilibrium quantities, and variance of the expected profits of the new venture supply chain with the market's basic demand and the product's substitute coefficient are compared between the emergency sourcing strategy and the hunger marketing strategy under random demand. It is shown that when the realized uncertain demand is small, equilibrium prices and equilibrium quantities will not be influenced by the demand response time with the hunger marketing strategy; however, when the realized uncertain demand is large, the optimal price of the retailer in new venture supply chain with the hunger marketing strategy will be higher than the equilibrium price with the emergency sourcing strategy and the retailer's sales volume with the hunger marketing strategy will be lower than the equilibrium quantity with the emergency sourcing strategy. It is also shown that the expected profit of the new venture supply chain with the hunger marketing strategy will also be bigger than that with the emergency sourcing strategy even when the additional emergency cost is zero. Besides, the expected profit increase rate is increasing monotonically in the market's basic demand and decreasing monotonically in the product's substitute coefficient. It means that the hunger marketing strategy is effective to the new venture supply chain.

Key words: competing supply chains, new venture, random demand, hunger marketing