The Spaniard insists his side can improve significantly and have yet to reach the standards they set last season, while he also says the Bundesliga title race is far from over
Guardiola is aiming to replicate predecessor Jupp Heynckes, who won the Bundesliga, Champions League and DFB-Pokal during his final season at the club.
With Bayern leading the Bundesliga and having secured Champions League qualification as Group D winners, Guardiola has enjoyed a successful start to his debut campaign at the Allianz Arena, but the former Barcelona boss claims his side can still look to improve.
"We are not the best team in Europe," he said. "The last year was incredible, the club earned Jupp lots and lots of praise. This year we do not deserve the praise.
"We're not the best team in Europe. We can improve a lot."
Bayern were beaten 3-2 by Manchester City in the Champions League on Tuesday and Guardiola wants a response against Hamburg on Saturday.
Despite enjoying a four-point advantage at the top of the German top flight, Guardiola does not believe the title race is over.
"I have the feeling that people think the Bundesliga is already decided," he added. "That's not true, we are only in December.
"A win (on Saturday) is important to keep our enemies at bay. We have struggled a lot to have this advantage.
"I'm surprised by how difficult every single game is in the Bundesliga.
"It's important to win against Hamburg in order to keep the distance to Leverkusen, Dortmund and Gladbach."
Guardiola also confirmed that a decision on the involvement of David Alaba and Javi Martinez, who are suffering with finger and shoulder injuries respectively, would be made on Saturday.