How can smaller agencies survive competition from the giants?

There are major digital agencies out there which have access to resources, marketing budgets and contacts most of us can only dream of.
Is there really any chance for a small agency to survive against this kind of competition?
Of course there is.
Small businesses survive and even flourish in many sectors against major competition. It’s just a matter of playing to your strengths.
There are plenty of fish in the sea
Just as digital agencies come in all shapes and sizes, so do potential clien