The Mercedes juggernaut screeched to a halt at Sepang over the weekend, but Toto Wolff says the team "just need to stay calm" and increase their pace of development.
Having won eight races in a row – seven at the backend of 2014 and the 2015 season opener in Australia – many believed Merc would once again dominate at their home race in Malaysia, especially with Lewis Hamilton starting on pole.
However, Sebastian Vettel used a two-stop strategy to take his maiden win as a Ferrari driver and also hand the Italian outfit their first win since 2013.
Wolff admitted after the race that it was a "wake-up call" for Merc, but he is confident they can get back on track pretty quickly.
"We just need to analyse in the next couple of days where we went wrong, what we need to improve, whether we need to bring any developments forward, put them on the car quicker, what we are doing about engine number two. And assess that properly," he said.
"But definitely, we need to increase the pace of our development. We have everything we need. We feel confident in the resources we have, and that we are well placed. We just need to stay calm. Maybe take some things earlier on the car than we planned, but there is no reason to panic.
"We are back into a regular racing season where you have more than just one contender. We are back to normal business."
Wolff adds they won't overreact to this weekend's results and are ready for a "good battle".
"We were not in control of things on Sunday," he said. "It was clear the winning streak was not going to go on forever. I think we must not be extreme in our assessment.
"In Melbourne we were extreme in thinking Mercedes was going to win all season, and here we are two weeks later and we say, ‘Is this the end of an era?’ It is not the end of an era, maybe the start of a new era, of a good battle, a battle we would like to take on."