The case will handle it.
The motherboard will fit it, probably.
The CPU is very weedy and would need to be replaced.
The power supply is an area where corners are usually cut and 500W of cheap power may not be enough for most really high-end GPUs.
You would want to upgrade memory to 8Gb.
You can certainly upgrade the GPU to something significantly better.
This is a low-end system and it is build to a price point. Look on the site and see the best GPU that they put in this case with a 500W power supply and that will give you an idea of how far you could go.