Los Blancos have started their La Liga campaign in disappointing fashion, losing two of their first three games of the season.
They are already six points adrift of early league leaders Barcelona, but the Italian manager is confident that he has the best team in Europe when on top form.
"The quality of this team is the best in Europe," he told reporters at a press conference.
"No player is in doubt about being here, everyone's happy to be playing for Madrid. I feel that, as a coach, my job is to fix things that are wrong with the team, as happened last year. Every game can be positive if you show a reaction.
"I think the problem is we need more consistency over 90 minutes. We need maximum concentration and to focus on small details. On the fitness side of things, we need more time to get our players into the best shape possible. Some players arrived on August 5 and need time to train."
Madrid begin their Champions League title defence against Basel on Tuesday.