Manufacturing firms have two main modes of production: Make-to-order (MTO) and make-to-stock (MTS). While competing with each other, firms in different modes also face fluctuations in market demand and changes in customer preferences. In order to explore the influence of these market factors on the competitive outcome of manufacturing enterprises, this paper simulates the production and pricing decision-making processes of MTO and MTS manufacturers, constructs a market competition model containing four types of subjects: Suppliers, manufacturers, demand side, and market, and investigates the evolution of the market under different types of demand (stable, cyclical, impulsive, and mixed) and different demand preferences (time-sensitive, equilibrium, and price-sensitive). After validating the model, this paper, through experimental design and ANOVA, finds that the effect of demand type on the performance of the two types of firms is insignificant, while demand preference produces a significant effect: MTO firms dominate when the demand is sensitive to delivery time, while MTS firms are better suited to the demand with price preference. MTS firms have a higher probability of survival when there are constant entrants and eliminators in the market.