Arsenal CEO Ivan Gazidis believes the club is moving in the right direction in respect to how it is conducting business in the summer transfer window.
The Gunners have already made three signings so far but 21-year-old Takuma Asano and 20-year-old Rob Holding are unlikely to secure a regular place in manager Arsene Wenger's squad.
Yet, the South African born insists that the squad is strong enough to challenge for this season's Premier League title.
"This approach, for us, gives us a very, very powerful balance because it's not just about spending money but about how you spend your money and doing it wisely," Gazidis told ESPN.
"It's about having a strong core philosophy and values within the club that players buy into and our fans can be proud of.
"These are all things that lead to success, and when you look at Arsenal over the last four or five years, there's no question that the squad has been progressing in strength.
"We've got a squad now that we believe is capable of competing to win the Premier League. We came in second last year, which was disappointing. But we're on the right track.
"We're making progress in what is a fiercely competitive world, against competitors that have the capability to spend far more money than we do.
"We're doing it by being very, very disciplined; spending money where we believe it makes a difference, but also giving young players a chance and believing in ourselves and our values."