This paper proposes a model that enables consideration of the realistic anisotropic environment surrounding an active material particle by incorporating both diffusion and migration of lithium ions and electrons in the particle. This model makes it possible to quantitatively evaluate effects such as fracture on capacity degradation. In contrast, the conventional model assumes isotropic environment and only considers diffusion in the active particle, which cannot capture the effect of fracture since it would predict results contradictory to experimental observations. With the developed model we have investigated the effects of active material electronic conductivity, particle size, and State of Charge (SOC) swing window when fracture exists. The study shows that the low electronic conductivity of active material has a significant impact on the lithium ion pattern. Fracture increases the resistance for electron transport and therefore reduces lithium intercalation/deintercalation. Particle size plays an important role in lithium ion transport. Smaller particle size is preferable for mitigating capacity loss when fracture happens. The study also shows that operating at high SOC reduces the impact of fracture.