Manuel Pellegrini's men have won all six of their Premier League games on home soil this term, scoring an impressive 26 goals.
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And in their previous two matches at the Etihad Stadium, they have scored six and seven goals against Tottenham and Norwich respectively.
But Laudrup insists his side can cause an upset despite having never won at City since their promotion to the Premier League.
"You can't play with fear in football. There is a lot of respect, you have respect for everybody, the ones on top and the bottom, but never fear," the Dane told reporters.
"They are best home team in the league so we know it will be a tough afternoon, but we can only surprise there.
"Everybody expects City to win by some goals because they've done that against everybody, including Manchester United and Tottenham.
"I think we will go there to do the best we can to get something out of it, and whatever happens we will still present a competitive team."
Swansea have won three of their six games away from the Liberty Stadium this season but City are the first title contenders they have visited.