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1. Australian Wine Industry The Australian wine industry is one of the rapid grow industry in Australia as a result of both internal and external markets. This industry experienced many technological chances, first, looking for cost competitiveness against substitute industries and nowadays, to be more competitive against the external producers, trying to introduce better wines to achieve better profits. 1.1 Trends in number of wineries Figure 1 Source: Australian Wine & Brandy Cooperation, 2003. In Australia as shown in figure 1 number of wineries slightly increases form year to year. Currently there are 1625 wineries in comparison, by 2002 increase by 200 wineries. Therefore entry and exit to Australian wine industry market is open. 1.2 Number of wineries who own location for wine grape crush. From 1625 wineries only 21.5% own location for grape crush. In 2002, 350 wineries owned 398 locations for wine grape crush. In comparison in 2001 306 wineries owned 351 locations....

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