Used primarily as an intermediate in organic synthesis, this compound plays a key role in the preparation of pharmaceuticals and agrochemicals. Its functional groups—methoxy, nitro, and amide—allow for selective transformations, making it valuable in constructing complex molecules. The nitro group can be reduced to an amine, enabling further derivatization such as diazotization or amide coupling. The presence of the methoxy group influences reactivity and regioselectivity in electrophilic substitution reactions. It is also employed in the development of bioactive compounds, including potential antimicrobial or anti-inflammatory agents, due to its structural similarity to known pharmacophores. In research settings, it serves as a building block for heterocyclic synthesis, particularly in the formation of fused ring systems.