Toto Wolff says Mercedes are loving an "amazing battle" with Ferrari and Red Bull and will head into the Azerbaijan Grand Prix expecting the unexpected.
Daniel Ricciardo won the Chinese Grand Prix last time out after championship leader Sebastian Vettel was wiped out by Max Verstappen.
Vettel topped the podium in the opening two races of the season, but the Ferrari driver leads Mercedes' defending champion Lewis Hamilton by just nine points after he could only finish eighth in Shanghai.
Mercedes are only a point ahead of Ferrari in the constructor standings, with Red Bull 30 adrift.
Wolff is relishing the competition and the Silver Arrows boss says he has no idea what to expect in Baku this weekend.
"So far, this year has all the ingredients for one of those legendary F1 seasons - a season that fans will look back on with smiles on their faces in years to come," he said.
"And it's not just the fans at home or at the race track who are excited - we feel the same. And we know that we have a massive challenge on our hands.
"Last year, we were in a tough fight with Ferrari. However, it was nothing compared to the intensity of this year's battle."
The 2018 @F1 season is shaping up to be one of the best in years!— Mercedes-AMG F1 (@MercedesAMGF1) April 24, 2018
Three teams, fighting it out at the front. This weekend, battle resumes in Baku… #F1 #DrivenByEachOther #AzerbaijanGP pic.twitter.com/kumAB9c7kL
Wolff added: "Both Red Bull and Ferrari will do everything they can to beat us. Their cars, their teams, their drivers - all of them operate at a high level and will continue to put us under pressure.
"Not everyone likes this kind of challenge - but we love it. Each member of our team joined this sport for these moments. We're all together in an amazing battle in which every detail counts and with an outcome no-one can predict.
"We're going into the race weekend in Baku feeling excited about that unpredictability. It will be the first time the Azerbaijan Grand Prix takes place in April, with completely different conditions to the previous years when we went to the Caspian Sea in June.
"This is a demanding circuit where the drivers need confidence in the car to find the right rhythm - and you want to hit the ground running on Friday morning. Last year's race threw up a podium that nobody could have predicted and, as is the way with street courses, we can once again expect the unexpected."
19. August 2018
|Ndidi signs long-term Leicester City contract|
|Pandya tears through feeble England to put India in command|
|Alonso creates motorsport history with victory at Silverstone|
|Kovacic: Chelsea and Sarri believe in me|
|Brighton loss a big lesson for United – Pogba|
|Mistakes hit United´s confidence - Mourinho|
|Brighton and Hove Albion 3 Manchester United 2: Murray lifts Seagulls to another win over Mourinho|
|Quickfire Moon treble sets up Rhinos win|
|Manchester City celebrate win with Silva´s son|
|Brentford 2 Sheffield Wednesday 0: Maupay stars as Bees buzz by Owls|
|Guardiola delighted with fit and firing Aguero|
|Waring marks 200th event with maiden title in Gothenburg|
|Guardiola dismisses Mourinho´s ´disrespectful´ accusation|
|Hulkenberg proud to survive in F1´s pay driver era|
|It´s here, it´s real, get on with it - Dyche dismisses Europa League excuse|
|Grujic agrees Liverpool extension, joins Hertha on loan|
|Martial starts as Lukaku, Young return for Manchester United|
|Fury-Wilder to be staged in November or December - Warren|
|Manchester City 6 Huddersfield Town 1: Aguero hits hat-trick as champions triumph|
|Burnley 1 Watford 3: Hornets end away day woes as Deeney leads destructive display|
|McFarland cleared to leave Scotland and join Ulster|
|Simeone wants ´only the best´ for Filipe Luis amid PSG links|
|PSG signing Boateng rated ´50-50´ by Bayern president|
|Cipriani a positive influence, insists Gloucester head coach|
|Bayer Leverkusen´s Bailey signs contract extension|
|Jesus and Aguero start for City as Mahrez misses out|
|Federer unsure what to expect from Djokovic duel|
|Chievo goalkeeper suffers broken nose, whiplash in Ronaldo collision|
|Simmons lauds influence of ´big brother´ LeBron|
|PSG´s Cavani selected by Uruguay as Coito fills in for Tabarez|
|Starc leads tributes after ´leader of the pack´ Johnson retires|
|Hazard confirms he is staying at Chelsea this month|
|Liverpool´s Firmino dreaming of Premier League title glory|
|Raiders rock the Roosters as NRL´s top-four battle hots up|
|Erasmus demands improved Springboks|
|Athletics pull even with Astros in AL West|
|Mercurial quick Johnson retires from cricket|
|MLS Review: Royer leaves it late for Red Bulls, Dallas bounce back|
|Crotty concussed, Folau injured|
|DFB president Grindel sorry Ozil felt ´deserted´|
|Busch picks up first win of season in Night Race|
|NASCAR results at Bristol: Kurt Busch picks up first win of season in Night Race|
|Woakes welcomes back ´big-game player´ Stokes|
|´Genius´ Messi still amazes Valverde|
|All Blacks, Springboks await Namibia at Rugby World Cup|
|Federer to face Djokovic after Goffin withdraws|
|Rain halts plays at Wyndham Championship|
|De Gea will extend contract soon, says Mourinho|
|Halep to meet Bertens in Cincinnati final|
|Frampton set for Warrington fight after dominant Windsor Park win|
|Messi makes LaLiga history with Barcelona´s 6000th goal|
|MC Alger defeat throws quarter-final chase wide open|
|Barcelona 3 Deportivo Alaves 0: Messi´s milestone goal sets up victory|
18. August 2018
|Djokovic on course for Masters 1000 history after Cilic victory|
|It´s on! - Wilder fight confirmed after Fury defeats Pianeta|
|Like Cruyff before him, Guardiola favouring Foden´s style over substance|
|Ronaldo tweets debut delight after Juve win|
|Chelsea are not title contenders yet, claims Sarri|
|Bayern Munich boss Kovac planning for Boateng stay|
|Championship Review: West Brom crush QPR as Leeds stay perfect|
|Allegri pleased with Ronaldo despite goalless Juventus debut|
|Chelsea can produce magic with Sarri in charge - Hazard|
|Emery ´happy without the result´ as Arsenal comeback falls short|
|Gordon confirms Cleveland Browns return|
|Eight shots and only 30 passes - Ronaldo´s Juventus debut in Opta numbers|
|Cristiano Ronaldo´s debuts: Best impressed, scoring a penalty & a blank for Juventus|
|Old boy Escare haunts Catalans in big Wigan win|
|Preston North End 2 Stoke City 2: Super sub Crouch salvages a point|
|Pochettino vows not to discuss Alderweireld future before five-minute answer|
|Waring, Aiken lead the way as Olesen stays in the hunt|