The Scarlets are currently the lowest-placed Welsh region and, if things stay that way at the end of the regular season, they would miss out on a place in the Heineken Cup.
But despite the Scarlets being four points adrift of the Blues with just four games remaining, Davies believes it is the Ospreys who have most to lose this weekend.
Scott Johnson's side currently sit in fifth place in the table and are the top Welsh side to date but a Scarlets victory would mean the Ospreys may suddenly have more than just qualification for the Magners League Play-Offs to worry about.
"There are 10 points between us in the league," said Davies.
"If we get the points on Friday the Ospreys are firmly in the mix... there's huge pressure on them.
"The Ospreys are playing at home and they're going to be favourites. It's going to be the team that reacts best to pressure that comes through.
"It's a game that everyone's very focused on winning, but we've got to stay composed. There's no need to panic."
Friday's trip to Swansea is the Scarlets' final away game of the Magners League season, with home ties against the Blues, Connacht and Glasgow to come.
And despite their current position, Davies remains confident that his side can leave the Liberty Stadium with a vital victory before taking a winning mentality back to the Parc y Scarlets.
"I'm really comfortable that, with the team we've got, we're going to go there and give them a game," Davies told BBC Sport Wales.
"We were on top for large parts of the game on Boxing Day. They got a couple of moments right and got the result.
"Every game and point is important to the Welsh regions in this league at the moment and we always knew our Cardiff Blues draw at home on April 17th would be a big game.
"We've now got to focus on getting a result against the Ospreys next weekend and our three remaining home fixtures which hopefully will bring us an advantage with a vocal home crowd supporting us as this battle will go down to the wire."
Guinness PRO12
Suite 208, Alexandra House,
The Sweepstakes
Ballsbridge, Dublin 4, Ireland