Toto Wolff has conceded Mercedes has no option but to improve with the team's current position "unacceptable".
Mercedes has struggled for pace at the opening two races of the current season with Lewis Hamilton highlighting the team's struggles through his Q1 exit in Saudi Arabia.
Since the start of the hybrid era in 2014, Mercedes has claimed all eight constructors' championship titles but with the team lacking performance, extending this record-breaking run to nine already appears to be a difficult task.
“We need to fight [because] it is totally unacceptable where we are at the moment on performance," said Mercedes team principal Wolff.
"We are third on the road and sometimes not even [that] so it is just not an option to stay where we are.”
During the years of Mercedes' dominance, Wolff maintained his fondness for competition and in 2020 claimed, "I would wish for nothing more than a strong competition."
Asked if this was still the case given Mercedes' current situation, Wolff explained: “I love competition and I have always loved competition. We had a really strong run of eight years where we were leading the pack.
“Not always, but we managed our way into the lead and this time for me feels a little bit like 2013 where we just weren’t up to the speed with the Red Bull and probably not also the Ferraris.
"But we kept fighting and this is how I feel at the moment.