Used as an intermediate in the synthesis of dyes and pharmaceuticals, particularly in the development of azo dyes due to its aromatic nitro group and amine functionality. Its structure allows for coupling reactions in dye manufacturing. Also employed in the preparation of biologically active compounds, including potential antimicrobial or anti-inflammatory agents, where the nitrophenyl and aminoacetic acid moieties contribute to molecular design. Serves as a building block in organic synthesis for constructing more complex molecules in medicinal chemistry research.