そこで
so, and so (someone took action)
Situation。そこで、action taken。
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そこで introduces a deliberate action taken in response to a situation: 道がわからなかった。そこで、交番で聞いた, "I didn't know the way. So I asked at the police box".
The first sentence is a problem or a need; the second is what someone decided to do about it: 聞いた, 頼んだ, 決めた, 始めた.
It's close to それで, but それで can describe any consequence, including feelings and things that just happened. そこで is specifically "and so, we acted".
Compare すると, which is what happened next, not what anyone chose. そこで literally means "there", as in "at that point".
Examples
道がわからなかった。そこで、交番で聞いた。
I didn't know the way. So I asked at the police box.
客が減ってきた。そこで、値段を下げることにした。
Customers were falling away. So we decided to lower our prices.
一人では無理だった。そこで、友達に手伝いを頼んだ。
I couldn't manage on my own. So I asked a friend for help.
英語が苦手だ。そこで、毎朝ラジオで勉強している。
I'm bad at English. So I study with the radio every morning.
雨がやまない。そこで、試合を来週に延ばした。
The rain wouldn't stop. So we postponed the match to next week.