Mercedes boss Toto Wolff has no doubts about the potential of the team's W08 chassis, believing its car just requires to be tweaked and tuned.
Wolff acknowledges Ferrari's threat following Sebastian Vettel's impressive start to the 2017 season on the back of the German raking in two wins.
Mercedes on the other hand has dealt with tyre degradation issues which have impacted its performance, but the Silver Arrows squad is diligently working to resolve the problem.
Wolff offers a positive outlook before this weekend's Spanish Grand Prix.
"I don't think there is a particular pattern," he said.
"It is very marginal with tyre compounds, interaction with the track, the surface of the track, and the track temperature itself. Then there is surface bulk, and carcass temperatures.
"There is so much interaction you just have to get right in order to be in the window. One thing is for sure: we have a very fast race car, a fast qualifying car.
"We just need to tune it. And this is an exciting exercise."
Wolff insists there will be no letting up in the Mercedes camp, as Ferrari will likely continue its push forward.
"It is going to be very close – in fact more than very close," admits Wolff.
"They [Ferrari] came out of the winter with a good car and it seems to suit Sebastian a lot.
"We just need to stretch ourselves to perform as good as we can and, if we do like we did with Valtteri [in Russia], we are able to compete."