Vincent Kompany believes Manchester City’s extra competition in central defence will prove pivotal throughout the Premier League campaign following the signing of Nicolas Otamendi.

Kompany, the City captain, has played 90 minutes in each of his side’s three league games this season. The 2013-14 champions have won every match, scoring eight times and have yet to concede.

They sit top of the table after impressive victories over West Bromwich, Chelsea and Everton, their fine start in contrast to a stuttering previous season during which Kompany struggled for consistent form.

Manuel Pellegrini, the City manager, recently denied that Kompany’s place was under threat following the £34m arrival of Otamendi from Valencia. However, the £42m Eliaquim Mangala has also started the season well.

Kompany, discussing the arrival of Otamendi, said competition at centre-half would undoubtedly improve individual performances through the season. “It is so important in any top team to have quality players all over. The extra competition is good, really good,” said the Belgian, who has scored twice this season.

“You don’t play for a top team unless you have that. If you look at the schedule, you could end up with 50-60 games and that is impossible for one team. If you want to go for every trophy, we have got [Jason] Denayer, [Martin] Demichelis, Otamendi, Mangala and myself. You need that to go for it.

“You go back to what you mentioned before about competition – that is one of the reasons we have started so strong. You can’t really afford to do anything wrong during the week leading up to the game. Then during the game, you can’t do anything wrong either as there is always someone looking over your shoulder, waiting, who is just as good as you.

“If they are in a better moment and they deserve a chance, they will take your place. You have got to be at the top of your game. This is what you are seeing – a group of guys who know that they need to perform. If they don’t, someone else will do it.”

Kompany’s compatriot Kevin De Bruyne is also poised to make the move from Wolfsburg to Manchester City, and if the attacker joins for £50m it will take Pellegrini’s transfer spend in the current window to £152m.

Kompany, whose side play Watford on Saturday, said of his own good form: “It shows on the pitch that I feel good and I feel happy with myself. I am 29. Things are coming easier. I just don’t want to miss any opportunities to have a good game or have a good season. Every game counts for me. This is when I need to perform.

“[Clean sheets are] equally as important as the goals we score. You can have an off day – and it might have looked like we were having one when we were creating chances and not scoring – but as long as you don’t concede you are still in the game. From that moment, anything is possible.”