The former Germany international believes last year's finalists are one of the teams to beat, and has urged Borussia Dortmund to change their style of play in Europe
The Bavarians made it to the final of European club football's elite competition last term, where they were beaten by Chelsea on penalties, and Effenberg has stressed that winning the Champions League has to be their objective in 2012-13.
"The Bayern players had the chance of a lifetime to win the Champions League, but let it pass. This time they will have to aim for the trophy. That has to be the only objective," Effenberg was quoted as saying by Kicker.
"Bayern should stroll their group and are one of the favourites to go all the way. They are getting a lot of respect throughout Europe, and deservedly so."
Effenberg then discussed Borussia Dortmund's chances in Europe and urged them to change their attacking style of play if they are to advance to the latter stages of the competition.
"They will not achieve their goals with their offensive gameplan. Perhaps Jurgen Klopp should change their style a bit. You simply cannot keep up that attacking style of play in such a tough group.
"The important thing is to have a plan B for occasions like this. You cannot hit the gas like they do every three or four days over the course of the season."
Dortmund open their Champions League campaign against Ajax next week, and will also have to deal with Real Madrid and Manchester City.