According to Wikipedia, the term was coined by the U.S Justice Department. It refers to a strategy that was used by Microsoft to achieve a strategic position.
Develop a product that is similar to the competing product.
Improve the product to add features that are not in the competing products. Microsoft added new features with proprietary aspects to create new standards.
The new extensions or features become the main factor for dominating the market share because customers will come to buy the more efficient products.