The Scotland international is one of only three outfield players to have started every one of Liverpool's Premier League games this term.
Adam admits the threat of losing your place is keeping everyone on their toes and helping them perform to the peak of their capabilities.
"When you are at this club there are so many good players," said Adam.
"People like Dirk Kuyt on the bench, Steven Gerrard never played, Jamie Carragher never played and Craig Bellamy came off the bench as well.
"We've got four or five top strikers fighting for their places and everybody has got to take their chance when it comes.
"It's up to the manager who he picks but when you come to a team like Liverpool it's a squad game with 25 international players so it's going to be difficult to get in the team.
"But everyone has got to show they want to be in the team and a few players have done that. We know at any time we let slip our standards then we'll get dropped.
"If you're at a big club you need different options and we've got that.
"If we can use that to our advantage over the course of the season then we'll be very happy."
Despite embarking on a seven-game unbeaten run, Adam believes there is still a lot of room for improvement in the way they are playing.
"We're passing the ball well but there are other aspects to our game we know we're going to have to work on," added Adam.
"We're getting better every game but it takes time when you get so many new players together."