The Clarets host Chelsea at Turf Moor tomorrow.
"Chelsea are a top team," said Parker. "They've got world class footballers and an outstanding coach - I see them being in and amongst it this season.
"They're well structured in the way they play and they've got huge quality, a great group of players who can make a real difference in this league.
"But we feel we're in a strong position to take on the challenge of the game.
"We're at home, where our performances and results have been good, so we're looking forward to it."
Burnley host Chelsea after defeat at West Ham a fortnight ago.
"We know we fell short last time. We lost a bit of control and composure when it mattered. That’s on us, and it’s something we can put right," said Parker.
"We have to focus at all times, be composed in key moments, show resilience when we’re tested, and the mindset to respond. That’s what defines good teams, and that’s what we’re working towards."
Where we must improve
He added: "The finer details of our game need to improve - but I've seen a massive improvement, in terms of the way we're developing as a team.
"Of course there will be bumps along the way, but we'll keep nudging away.
"We've got a fully committed group of players, a real togetherness throughout the group and we're ready for the next challenge."
On Armando Broja and Quilindschy Hartman, Parker says both players are available.
"Armando's ankle is fine," said Parker, "he's back on the grass - and has a chance for the weekend. It's a relief it's not as bad as it first looked.
"Q was down with a bit of illness, but he's fine too."