Former Newcastle boss Hughton, who left Birmingham for another crack at the Premier League, knows just what a test it will be next season as the Canaries look to build on a 12th-placed finish under Lambert.
"It is about making sure we have a squad and a team which is good enough to continue to compete," said Hughton. "This is an unforgiving division and you can soon be on the end of a series of poor results."
He added: "I am still assessing what we already have, but will have no fear of bringing in players to make sure we have the quality to continue to compete and have the competition in the squad which we need."
Norwich's prospects will certainly be boosted by the retention of Holt, 31, who scored 15 goals to help keep the Canaries up last season.
Holt, though, had wanted the security of an extra 12-month extension, which put him at loggerheads with chief executive David McNally and raised interest from newly-promoted West Ham, who were said to have offered up to £6million.
However, following the appointment of Hughton, an amicable agreement was reached and Holt is now focused on spearheading the Canaries' forthcoming campaign.
"I never wanted to leave the club, but things happen and there has been a lot of speculation and things have been taken out of context," he said.
"My ambition was to get the three years. I have got a wife and a family who are settled in the area and I wanted to secure that.
"I have done that now, have agreed the deal and I am happy. My intention was to see my career out and I hope that will be the case."
Source: PA
Source: PA