Nico Rosberg's podium finish in the British Grand Prix has reignited his team's belief that it can win races and challenge for the 'best of the rest' tag behind Red Bull Racing and McLaren this year.
That is the view of Mercedes GP CEO Nick Fry, who is convinced that his outfit's season is now back on track after the tyre and blown-diffuser troubles it faced in Valencia a fortnight ago.
Speaking after Rosberg took third place at Silverstone, Fry told AUTOSPORT: "I think this is a good result because really we've been a little bit more conservative here.
"Valencia demonstrated to us that you can push a little bit too hard. We tried to put stuff on the car that clearly didn't work and then we had to backtrack, and we ended up with a very chaotic weekend.
"There was a deliberate strategy here of back to basics - refining what we had in Valencia, making it work properly, and having a solid strategy,
"The car may not be the quickest but it is not far off. To get a podium with Nico is very rewarding and a good lead into Hockenheim."
He added: "To get a top three constructors' we have to aim for podium finishes, including winning. I think there is plenty of opportunity. We have two great drivers and I think the strategy is always strong, the pit stops have invariably been the best or one of the best, and the car is a reasonable one."
Fry believes there is still plenty of room for improvement with its W01, especially with more performance to come from its F-duct, and reckons the team can now set its sights on beating Ferrari - which is 39 points ahead.
"Our objective is clearly to still be in the top three in the constructors'," he said. "I would be disappointed if we can't. That doesn't mean that we will throw caution to the wind and not focus on next year, because we are aware that this car has got some inherent issues which can only be resolved with next year's car.
"But while we want to get working on that, on the other hand, a top three in the constructors' will be a good springboard to a better year next year."