Used primarily as an intermediate in the synthesis of dyes and pharmaceuticals, this compound plays a key role in the preparation of azo dyes due to its ability to undergo diazotization and coupling reactions. It is also employed in the development of certain analytical reagents for detecting carbonyl compounds, where its hydrazine functionality reacts selectively to form hydrazones. Additionally, derivatives of this compound are explored in medicinal chemistry for their potential biological activity, particularly in the design of compounds with antimicrobial or antitumor properties. Its nitro and methoxy groups allow for further chemical modifications, making it a versatile building block in organic synthesis.