Real Madrid is a capable team with talented players and if we see currently they are in a state where they win all the games. But there are things which need to be sorted out. Real Madrid has a need for new signings because the focus should not only win the match but on a long term stable position to become a stronger team.
Real Madrid don't have good academy like Barcelona but they have better transfer strategy that has worked well for many decades. They have managed to have many star players while maintaining good ability of winning titles as well as securing their club finance well over time. Playing for Real Madrid as players and working for them as a head coach is very stressful as consequence of their high ambition of winning big titles every season. They have already had a very good squad, and also enhanced it by some star players this summer. All these things will contribute to their performances for a next season that possibly are better than what they show in a past season.
Xabi Alonso is a talented coach and his profile will fill more positive points if he gets success to make the Real Madrid team as a team performance not an individual's performance. Because there are big milestones remaining Real Madrid has to achieve to make them a strong and a team with good reputation.
Xabi Alonso is a young coach but he had very good experience as a star player in many years at many big clubs. As a young coach, he used his player experience very well and proved his management quality in Bayer Leverkusen. In Real Madrid, Xabi Alonso will have better player resource than in Bayer Leverkusen and it will be good support for his management job.