These firms need to cooperate in order to form an industry standard and expand, creating a network of compatible users. These same firms, nearly immediately, develop strategies to compete with each other for market share and market domination.
Firms can either compete immediately, or they can compete sometime in the future.
Competing to set a standard along is risky, winner takes all. Firms could win or lose everything very quickly. But, forming an alliance with another firm could make your chances of setting a standard exponentially easier. The key is identifying your natural allies, firms that compliment your products or services and have similar goals. Be aware that some firms may not welcome standards, be it an older technology they own or whatnot, and these firms need to be avoided.