Grammar detail: そこで

そこで  so, therefore
100 words
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sentence X
sentence Y
X, therefore, Y
そこで is very similar to the more common それで, and the translation is the same - so, therefore, as a result etc. The key difference is that use of そこで implies that sentence Y is a positive or forward-looking step taken as a result of the situation described in sentence X, whereas それで just describes a natural or inevitable consequence.
Therefore, our firm has decided to use this as a stepping stone to launch a new project.
Source: Japan Times
Note that そこで appears much more commonly as the combination of そこ (there) and the particle で (location indicator) to describe something happening 'there'.
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Kanji used in this grammar

シャ    company   やしろ Shinto shrine   
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シン   あたらしい    あら    にい- new   
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キ    standard   
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リツ   リュウ   た to stand   たてる to build   
ジョウ   ショウ   うえ above   うわ- above   あげる to raise   あがる to rise   かみ first half, upper part   のぼ to climb   のぼせる to bring up, to raise   のぼ to bring up   
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