What is a correct way to start of with the competitive analysis process and how to evaluate? I am new to this field, haven't done it before. What all the factors i should focus on the most? Thanks.
I can see several ways to interpret this question. I'll answer both.
If your UX position is in management, you might conduct a S.W.O.T. analysis—a common form of comparative analysis. SWOT means Strengths-Weaknesses-Opportunities-Threats. You assess your company's Strengths and Opportunities in terms of your product, and you assess your Weaknesses and Threats in terms of other companies and their products.
If your UX position is tactical, then you may have been asked to review other products in the same product space (direct competitors) or in a different product space. You start by doing an inventory. Who has what? This often results in a me-too product strategy, and is not typically very user-centred. That's because it often results in feature-itis, a bewildering array of features that users don't need, but that Marketing sees as essential to sell the product.
If you do a more in-depth assessment, for example by measuring user performance in competing products, then that can help set a baseline or target to beat.
An analysis of products in a different space is usually intended to find insight for innovation. Can an idea from a different product that solves a different problem be re-purposes in your product.
How you conduct your competitor analysis depends on what you need to accomplish.